What is the 'Watchlist'
1. A list of securities being monitored closely by a brokerage or exchange in order to spot irregularities. Firms on the watchlist 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 watchlist 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.
"Watchlist" is commonly spelled as two words: "watch list," and is also sometimes referred to as a grey list.
Create a watchlist on Investopedia to track and manage your stock and ETF performance over time.
BREAKING DOWN 'Watchlist'
1. A watchlist is a used to specify companies where irregularities are present, or where the potential for insider trading or other corruption exists. The watchlist 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 watchlists 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.