Bucketing


Bucketing
A situation where, in an attempt to make a short-term profit, a broker confirms an order to a client without actually executing it. A brokerage which engages in unscrupulous activities, such as bucketing, is often referred to as a bucket shop.

If the eventual price that the order is executed at is higher than the price available when the order was submitted, the customer simply pays the higher price. On the other hand, if the execution price is lower than the price available when the order was submitted, the customer pays the higher price and the brokerage firm pockets the difference


Investment dictionary. . 2012.

Look at other dictionaries:

  • Bucketing — Bucket Buck et, v. t. [imp. & p. p. {Bucketed}; p. pr. & vb. n. {Bucketing}.] 1. To draw or lift in, or as if in, buckets; as, to bucket water. [Webster 1913 Suppl.] 2. To pour over from a bucket; to drench. [Webster 1913 Suppl.] 3. To ride (a… …   The Collaborative International Dictionary of English

  • bucketing — /ˈbʌkətɪŋ/ (say bukuhting) noun Colloquial a severe verbal attack or criticism: *Sydney officials copped a bucketing for teeing up jobs and trips for family members of IOC delegates during the fight to host the 2000 Games. –aap news, 2000 …   Australian English dictionary

  • bucketing — Interest rate risk management which matches interest rate exposure of future inflows and outflows, with offsetting interest rate exposure at pre determined future dates. LIFFE …   Financial and business terms

  • bucketing — I Everyday English Slang in Ireland v raining very heavily II Irish Slang raining heavily …   English dialects glossary

  • bucketing — n. illegal practice by a broker of carrying out a client s order for his/her own account instead of executing it on the market hoping to make a short term profit buck·et || bÊŒkɪt n. pail, container for holding liquid; basket (Basketball… …   English contemporary dictionary

  • bucketing — Receipt of orders to purchase and sell stock without intention of actually executing such orders …   Black's law dictionary

  • bucketing — Receipt of orders to purchase and sell stock without intention of actually executing such orders …   Black's law dictionary

  • bucketing — Running a bucket shop. See bucket shop …   Ballentine's law dictionary

  • bucketing — noun ( s) 1. : the operation of a bucket shop 2. : the practice of a broker who buckets orders or takes the other side of customers trades …   Useful english dictionary

  • bucket down — ˈbucket ˌdown [intransitive] [present tense I/you/we/they bucket down he/she/it buckets down present participle bucketing down past tense …   Useful english dictionary


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