Ginzy Trading

Definition of 'Ginzy Trading'


In floor trading, the practice of selling part of an order at the offer price and the remainder to the same broker at the lower bid price. Ginzy trading was originally performed primarily to achieve an average price for the customer which is within the predefined increments, or "ticks," in which the market is traded.

Investopedia explains 'Ginzy Trading'


Ginzy trading is generally considered unethical and the practice is unlawful if such a trade is caused by collusion among brokers. Exchange rules typically require that brokers seek to get the best price possible for their customers and that they make all trades on the open market. The need for a Ginzy trade has declined as exchanges have decreased tick sizes from the 1/8th of a dollar ticks seen in the past down to the one cent ticks that many instruments trade in today. Increased use of electronic and over the counter order matching systems also help to prevent illegal trades.



comments powered by Disqus
Hot Definitions
  1. Yield Burning

    The illegal practice of underwriters marking up the prices on bonds for the purpose of reducing the yield on the bond. This practice, referred to as "burning the yield," is done after the bond is placed in escrow for an investor who is awaiting repayment.
  2. Marginal Analysis

    An examination of the additional benefits of an activity compared to the additional costs of that activity. Companies use marginal analysis as a decision-making tool to help them maximize their profits. Individuals unconsciously use marginal analysis to make a host of everyday decisions. Marginal analysis is also widely used in microeconomics when analyzing how a complex system is affected by marginal manipulation of its comprising variables.
  3. Treasury Inflation Protected Securities - TIPS

    A treasury security that is indexed to inflation in order to protect investors from the negative effects of inflation. TIPS are considered an extremely low-risk investment since they are backed by the U.S. government and since their par value rises with inflation, as measured by the Consumer Price Index, while their interest rate remains fixed.
  4. Gilt-Edged Switching

    The selling and repurchasing of certain high-grade stocks or bonds to capture profits. Gilt-edged switching involves gilt-edged security, which can be high-grade stock or bond issued by a financially stable company such as the Blue Chip companies or by certain governments.
  5. Master Limited Partnership - MLP

    A type of limited partnership that is publicly traded. There are two types of partners in this type of partnership: The limited partner is the person or group that provides the capital to the MLP and receives periodic income distributions from the MLP's cash flow, whereas the general partner is the party responsible for managing the MLP's affairs and receives compensation that is linked to the performance of the venture.
  6. Class Action

    An action where an individual represents a group in a court claim. The judgment from the suit is for all the members of the group (class).
Trading Center