When a broker receives a buy and sell order for the same stock at the same price, and subsequently makes a simultaneous trade between two separate customers.


This is legal only if the broker first offers the securities publicly at a price higher than the bid.

Also known as a cross order or crossing.

  1. Sell

    The process of liquidating an asset in exchange for cash. The ...
  2. Buy

    1. A recommendation to purchase a specific security. A buy rating ...
  3. Cross Trade

    A practice where buy and sell orders for the same stock are offset ...
  4. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
  5. Clowngrade

    An upgrade or downgrade of a security for reasons considered ...
  6. Valium Picnic

    A market holiday or a slow trading day.
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