Holding The Market
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 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. |
Related Definitions
Articles Of Interest
-
An Introduction To Stock Market Indexes
Be in the know - learn about the five most talked about indexes and what makes them all different. -
Policing The Securities Market: An Overview Of The SEC
Find out how this regulatory body protects the rights of investors. -
Index Investing
Get to know the most important market indices and the pros and cons of investing in them. -
Forex: Demo Before You Dive In
All trading platforms have benefits and drawbacks - master the fake trade before making a real one. -
Forget The Stop, You've Got Options
Using options instead of stop-loss orders adds finesse and control in limiting losses. -
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. -
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. -
Understanding Order Execution
Find out the various ways in which a broker can fill an order, which can affect costs. -
Intermediate Guide To MetaTrader 4
Learn how to use MetaTrader 4 software at an intermediate level. -
A Look At Exit Strategies
Setting appropriate exit points should help you avoid taking premature profits or running losses.
Free Annual Reports