trading on the perimeter

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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.