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Ginzy Trading

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Dictionary Says

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 Says

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.

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