To trade a security on a given exchange when a better price is available on a different exchange. Computerized links between exchanges have made trading through inadvertently less common and more difficult for unscrupulous brokers. Rule NMS attempts to prevent trading through by requiring most orders to be sent to the exchange with the best possible price.
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To transact an order on an exchange when a more advantageous price is available through another source.
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.