Bagging the Street
Definition of 'Bagging the Street'An investor's failure to avoid trading in the stocks that are part of a block and also within a specified amount of time. Bagging the street refers to a situation where an investor or a trader trades the securities shortly following initiation of the trade. Traders who frequently practice bagging the street will often have their margin requirements revoked by a brokerage. |
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Investopedia explains 'Bagging the Street'Block trades are usually for large quantity of stocks; therefore, and thus can have an impact on the price of shares underlying the block, especially if those securities are illiquid. Therefore, traders who practice bagging the street will attempt to gain an unfair disadvantage if the block trade is large enough to impact stock prices. Once the block trade fully goes through and the market quickly absorbs the impacts, investors are free to resume their desired trading strategies. |
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