Investopedia

Continue to Site »

Holding The Market

Filed Under »
Dictionary Says

Definition of 'Holding The Market'

The practice of placing active or pending orders for a security into a market where the price is dropping rapidly in an attempt to "hold" the price of the security steady, or create a floor in the security. This practice is outlawed in most market instances, except when a broker or other party is mandated to keep the price of a security steady. This is only done in rare cases where there isn't enough market depth to hold the price.

Holding the market is also sometimes used as a slang phrase for owning a general market index such as the S&P 500 or Wilshire Total Market.
Investopedia Says

Investopedia explains 'Holding The Market'

Holding the market is hard to pull off these days because any one person would have to have very deep pockets to make a significant impact on a security's price. One of the things that keeps holding the market from occurring more frequently is that it is rarely profitable and can often lead to severe losses if prices do not rebound.

Articles Of Interest

  1.

    An Introduction To Stock Market Indexes

    Be in the know - learn about the five most talked about indexes and what makes them all different.

  2. Policing The Securities Market: An Overview Of The SEC

    Find out how this regulatory body protects the rights of investors.

  3. Index Investing

    Get to know the most important market indices and the pros and cons of investing in them.

  4. Forex: Demo Before You Dive In

    All trading platforms have benefits and drawbacks - master the fake trade before making a real one.

  5. Forget The Stop, You've Got Options

    Using options instead of stop-loss orders adds finesse and control in limiting losses.

  6. The Stop Loss Order

    A stop loss order can protect an investor's portfolio when it is left unattended. Find out more about this market order and how it can work for you.

  7. Introduction To Order Types

    A trade order is an instruction that is sent to a broker to enter or exit a position. Learn about the various types available to investors.

  8. Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.

  9. Intermediate Guide To MetaTrader 4

    Learn how to use MetaTrader 4 software at an intermediate level.

  10. A Look At Exit Strategies

    Setting appropriate exit points should help you avoid taking premature profits or running losses.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  2. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  3. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  4. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  5. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  6. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.
Trading Center