Flash Trading

Filed Under »
Dictionary Says

Definition of 'Flash Trading'

A controversial computerized trading practice offered by some stock exchanges. Flash trading uses highly sophisticated high-speed computer technology to allow traders to view orders from other market participants fractions of a second before others in the marketplace. This gives flash traders the advantage of being able to gauge supply and demand and recognize movements in market sentiment before other traders.

Flash orders are also known as "step-up orders" or "pre-routing orders".
Investopedia Says

Investopedia explains 'Flash Trading'

Flash orders have been subject to scrutiny because of the advantage they give traders who are able to participate in the orders. Flash trading has been compared to front running, and opponents believe that the practice is harmful to market transparency. Proponents of flash trading state that it is necessary to provide liquidity for exchanges.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. High-Frequency Trading - HFT

    A program ...
  2. Securities And Exchange Commission - SEC

    A government ...
  3. New York Stock Exchange - NYSE

    A stock exchange ...
  4. Dark Pool Liquidity

    The trading ...
  5. Upstairs Trade

    A buy or sell ...
  6. Front Running

    The unethical ...
  7. Ultrafast Trading

    A lucrative and ...
  8. Quote Stuffing

    A tactic of ...
  9. Manual Trading

    A trading system ...
  10. Close

    The end of a ...

Articles Of Interest

  1. What is high-frequency trading?

  2. Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
  3. Direct Access Trading Systems

    DATs can dramatically speed up order execution - find out how this system gives novice traders an edge.
  4. 4 Dishonest Broker Tactics And How To Avoid Them

    Protecting yourself from unscrupulous practices means knowing how to spot them.
  5. Price Shading In The Forex Markets

    This practice puts brokers ahead of their clients, but it doesn't have to be a negative for traders.
  6. Triple Screen Trading System - Part 2

    Market tide is the basis for making trading decisions in this three-part system.
  7. Invest Like A Pro

    By following the strategies of the pros, even a beginner can learn to invest like an expert.
  8. Can Regular Investors Beat The Market?

    With the big name competition out there, hard-working people who invest have a tough time beating the market.
  9. 4 Signs You're Addicted To Investing

    Compulsive trading will ratchet up your transaction costs, stress level and time spent away from the important things in life.
  10. Losing To Win

    Adopting realistic expectations is essential to staying in the trading game.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center