Crowd trading


Crowd trading

Used for listed equity securities. Group of exchange members with a defined area of function tending to congregate around a trading post pending execution of orders. Includes specialists, floor traders, odd-lot dealers, and other brokers as well as smaller groups with specialized functions. See: Priority.

Crowd

1. Members of an exchange who congregate in a certain area on a trading floor to make transactions. Crowds especially trade in certain securities. For example, the active bond crowd may gather in one area of the floor while the cabinet crowd may gather in another.

2. Informal for most investors. People with different investment philosophies alternately advise to either follow or avoid following the crowd.