overtrade

overtrade
overtrade o‧ver‧trade [ˌəʊvəˈtreɪd ǁ ˌoʊvər-] verb [intransitive]
1. ACCOUNTING COMMERCE if a business overtrades, it does not have enough working capital (= available cash) to pay its creditor S (= people and organizations it owes money to) and employees:

• Directors of a tour operating company have to give financial guarantees which will be used if the company overtrades and then fails.

2. FINANCE if a broker overtrades, they buy and sell investments for customers more often than they should, in order to increase the amount of commission they earn; = CHURN
— overtrading noun [uncountable] :

• Before expanding, arrangements must be made for the higher cash requirements needed for this. If not, there is a risk of overtrading.

• The securities house imposed fines for overtrading habits that in fact were encouraged.

* * *

overtrade UK US /ˌəʊvəˈtreɪd/ verb [I]
► FINANCE, PRODUCTION if a company overtrades, it sells more products than it can make, or more than it can afford to produce: »

The company was overtrading and running a risk of collapsing.

► STOCK MARKET to buy and sell shares too often: »

My broker was overtrading in order to make a higher commission.

overtrading noun [U]
► »

One big reason why funds underperform is overtrading.


Financial and business terms. 2012.

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Look at other dictionaries:

  • Overtrade — O ver*trade , v. i. To trade beyond one s capital; to buy goods beyond the means of paying for or selling them; to overstock the market. [1913 Webster] …   The Collaborative International Dictionary of English

  • overtrade — [ō΄vər trād′, ō′vər trād΄] vi. overtraded, overtrading to trade beyond one s financial means or the market demand …   English World dictionary

  • overtrade — intransitive verb Date: 1734 to trade beyond one s capital …   New Collegiate Dictionary

  • overtrade — /oh veuhr trayd /, v.i., overtraded, overtrading. to trade in excess of one s capital or the requirements of the market. [1615 25; OVER + TRADE] * * * …   Universalium

  • overtrade — v. trade beyond one s financial capability or the demand in the market …   English contemporary dictionary

  • overtrade — o•ver•trade [[t]ˌoʊ vərˈtreɪd[/t]] v. i. trad•ed, trad•ing. bus to trade in excess of one s resources • Etymology: 1730–35 …   From formal English to slang

  • overtrade — /oʊvəˈtreɪd/ (say ohvuh trayd) verb (i) (overtraded, overtrading) to trade in excess of one s capital or the requirements of the market …  

  • overtrade — | ̷ ̷ ̷ ̷| ̷ ̷ intransitive verb : to trade beyond one s capital : buy goods beyond the means of paying for or selling them transitive verb : to do business beyond (as one s capital) …   Useful english dictionary

  • Trade — A verbal (or electronic) transaction involving one party buying a security from another party. Once a trade is consummated, it is considered done or final. Settlement occurs 1 5 business days later. The New York Times Financial Glossary * * * ▪ I …   Financial and business terms

  • overtrading — Excessive broker trading in a discretionary account. underwriters persuade brokerage clients to purchase some part of a new issue in return for the purchase by the underwriter of other securities from the clients at a premium. This premium is… …   Financial and business terms

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