DEFINITION of 'Eighthed'

A slang term used to describe when one trader undercuts or outbids another's ask or bid by one-eighth of a dollar. This term carries a derogatory connotation, as it implies an attempt to steal a trade by a small change in price.


The term is no longer used in the equity markets, as stocks are no longer quoted to an eighth of a dollar. A trader may use the term in the context of "being eighthed" or claiming that someone topped or cut them "by an eighth."

  1. Ask

    The price a seller is willing to accept for a security, also ...
  2. Bid Whacker

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  3. Hit The Bid

    A buzzword used to describe an event where a broker agrees to ...
  4. Trader

    An individual who engages in the transfer of financial assets ...
  5. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
  6. Market

    A medium allowing buyers and sellers of a specific good or service ...
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