trading on the perimeter

(redirected from Traded on the Perimeter)

Trading on the Perimeter

The act of trading near a trading post when trading is particularly active. A trading post is a place on an exchange assigned to a specialist for the trading of certain securities. When the trading is very active, trading on the perimeter occurs because the crowd around the trading post renders investors unable to speak with the specialist directly. Instead, investors speak and trade between themselves.

trading on the perimeter

The trading of a security in the crowd around a specialist's post. When trading in a security becomes particularly active and floor brokers are unable to gain access to the specialist, trading on the perimeter may occur.