Fade

1. A contrarian investment strategy used to trade against the prevailing trend. "Fading the market" is typically very high risk, requiring the trader to have a high risk tolerance. A fade trader would sell when a price is rising and buy when it's falling. Also known as "fading".

2. In a dealer market, it is the failure of a dealer to honor a quote when a customer or another dealer wants to trade.

1. An example of fading would include buying on a dip in price and selling when the price rallies. Often it's a rather volatile strategy, but one which offers the potential for significant short-term gains. It requires little in the way of complicated analysis but the risk that trend continues is always present.

2. For example, if a better bid is posted on another exchange for a security and a market maker is unwilling or unable to match it for a client order, the market maker may offer to trade with the other market maker (with the better price). The market maker offering the better price must accept the offer and trade at the price offered or adjust the bid price.


Investment dictionary. . 2012.

Synonyms:

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  • fade — fade …   Dictionnaire des rimes

  • fade — fade …   Deutsch Wörterbuch

  • fade — [ fad ] adj. • XIIe; lat. pop. °fatidus, class. fatuus « fade », d apr. sapidus; cf. saveur 1 ♦ Qui manque de saveur, de goût. Aliment, boisson fade. ⇒ insipide; douceâtre, écœurant. Il aime la cuisine épicée, ici tout lui paraît fade. Qui… …   Encyclopédie Universelle

  • fadé — fade [ fad ] adj. • XIIe; lat. pop. °fatidus, class. fatuus « fade », d apr. sapidus; cf. saveur 1 ♦ Qui manque de saveur, de goût. Aliment, boisson fade. ⇒ insipide; douceâtre, écœurant. Il aime la cuisine épicée, ici tout lui paraît fade. Qui… …   Encyclopédie Universelle

  • fade — [ feıd ] verb ** ▸ 1 become less clear ▸ 2 become less famous ▸ 3 start to die ▸ 4 lose strength ▸ 5 stop performing well ▸ + PHRASES 1. ) intransitive if the light fades, it gets dark a ) intransitive or transitive if the color of something… …   Usage of the words and phrases in modern English

  • Fade — may refer to: *Fade (Blue Angel song), an obscure song by the band Blue Angel *Fade (Staind song), a song from Break the Cycle by alt rock band Staind *Fade (film), a cinematographic technique used in film *Fade (audio engineering), the gradual… …   Wikipedia

  • FADE — компьютерная программа, программное средство для защиты авторских прав, разработанное компанией Macrovision. FADE создан для использования в компьютерных играх и активно используется компанией Bohemia Interactive Studio в своих играх. Содержание… …   Википедия

  • fade — [feıd] v [Date: 1300 1400; : French; Origin: fader, from Latin fatuus; FATUOUS] 1.) also fade away to gradually disappear ▪ Hopes of a peace settlement are beginning to fade. ▪ Over the years her beauty had faded a little. 2.) …   Dictionary of contemporary English

  • fade — FADE. adj. de tout genre. Insipide, Sans goust, ou de peu de goust. Viande fade. une sausse fade. une douceur fade. On dit, Se sentir le coeur fade, pour dire, Avoir du degoust. Fade, se dit fig. pour dire, Qui n a rien de picquant, de vif, d… …   Dictionnaire de l'Académie française

  • Fade — Fade, v. i. [imp. & p. p. {Faded}; p. pr. & vb. n. {Fading}.] [OE. faden, vaden, prob. fr. fade, a.; cf. Prov. D. vadden to fade, wither, vaddigh languid, torpid. Cf. {Fade}, a., {Vade}.] 1. To become fade; to grow weak; to lose strength; to… …   The Collaborative International Dictionary of English

  • fade — [fād] vi. faded, fading [ME faden < OFr fader < fade, pale < VL * fatidus, prob. < L fatuus (see FATUOUS); infl. by vapidus, VAPID] 1. to become less distinct; lose color, brilliance, etc. 2. to lose freshness or strength; wither;… …   English World dictionary

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