Bucketing
A situation where, in an attempt to make a short-term profit, a broker confirms an order to a client without actually executing it. A brokerage which engages in unscrupulous activities, such as bucketing, is often referred to as a bucket shop. Investopedia Says:
If the eventual price that the order is executed at is higher than the price available when the order was submitted, the customer simply pays the higher price. On the other hand, if the execution price is lower than the price available when the order was submitted, the customer pays the higher price and the brokerage firm pockets the difference Related Terms:
Bucket Shop
Churning
Circular Trading
Cross Trade
Execution
Front Running
Guilt Edged Investment
Jitney
Portfolio Pumping
Pump and Dump |