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.

BREAKING DOWN '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.

  1. Margin Account

    A brokerage account in which the broker lends the customer cash ...
  2. Block Trade

    An order or trade submitted for sale or purchase of a large quantity ...
  3. Brokerage Company

    A business whose main responsibility is to be an intermediary ...
  4. Broker

    1. An individual or firm that charges a fee or commission for ...
  5. Block Order

    A signficant order placed for sale or purchase of a large number ...
  6. Block House

    A brokerage firm with the primary focus of locating potential ...
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