Watch List

AAA

DEFINITION of 'Watch List'

1. A list of securities being monitored closely by a brokerage or exchange in order to spot irregularities. Firms on the watch list might be suspected of regulatory violations, about to issue new securities, attracting usually heavy volume, etc.
2. A list of securities being monitored for potential trading or investing opportunities. An investor or trader may have a watch list of several, dozens or even hundreds of trading instruments. The investor waits for certain criteria to be met--such as trading over a certain volume, breaking out of a 52-week range or moving above its 200-day moving average--before placing trade orders.


Also called a grey list.

INVESTOPEDIA EXPLAINS 'Watch List'

1. A watch list is a used to specify companies where irregularities are present, or where the potential for insider trading or other corruption exists. The watch list can be considered a surveillance tool used to identify risks from customers, consultants, suppliers and other business partners.


2. Many trading platforms give investors and traders the opportunity to create watch lists and screen, or filter, for certain conditions to be met. The user can specify both fundamental and technical criteria in an attempt to find high probability trading or investing opportunities. The watch list may provide an alert, such as an audible alert, text message or email, that warns the user that conditions are about to be met or have been met.

RELATED TERMS
  1. Trading Platform

    Software through which investors and traders can open, close ...
  2. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  3. Security

    A financial instrument that represents: an ownership position ...
  4. Stock Idea

    A note of suggestion or thinking that initiates the further analysis ...
  5. Currency Trading Platform

    A type of trading software used to help currency traders with ...
  6. Business Broker

    A professional who specializes in the purchase and sale of companies. ...
Related Articles
  1. Would You Profit As A Day Trader?
    Active Trading

    Would You Profit As A Day Trader?

  2. How To Outperform The Market
    Trading Strategies

    How To Outperform The Market

  3. The Daily Routine Of A Swing Trader
    Trading Strategies

    The Daily Routine Of A Swing Trader

  4. Day Trading Strategies For Beginners
    Trading Strategies

    Day Trading Strategies For Beginners

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center