Meaning & use
cross trade
Last updated
Meanings
nouncountablefinance
A transaction in which a broker matches one client's order to buy with another client's order to sell the same security, completing both sides directly.
Grammar: Countable: a cross trade, two cross trades. It can also be used as an adjective.
Patterns
- cross trade between things
- a cross trade of something
The broker arranged a cross trade between two pension funds at the same price.
Regulators asked the firm to explain each cross trade it had made last year.
A cross trade can lower costs because neither side pays the market spread.
nouncountable or uncountablebusiness
Carrying of goods by a ship between two foreign ports, with neither port belonging to the ship's home country.
Grammar: Both uses appear: the cross trade in oil, or a profitable cross trade.
Patterns
- cross trade between places
A Greek tanker might handle a cross trade between Brazil and China.
The shipping line made its profit from the cross trade in grain.
Cross trade routes avoid the home port altogether.
Word forms
| plural | cross trades |
|---|
Common combinations
- execute a cross trade
- The fund manager executed a cross trade at midday.
- cross trade between accounts
- A cross trade between accounts requires careful documentation.
- disclose a cross trade
- Brokers must disclose a cross trade to clients.
- cross trade policy
- The company has a strict cross trade policy.
- cross trade rules
- The cross trade rules protect both clients.
Synonyms and how they differ
- internal match
- It is a plainer description and stresses that the order was matched inside the firm, while cross trade is the market term.
- matched trade
- It describes the pairing of buy and sell orders in general, not necessarily done by a single broker.
- crossing
- It is trader shorthand for the same event and is less formal than cross trade.
- third-country trade
- It is used in shipping and means trade between two countries other than the carrier's own.
Word family
Commonly confused: cross trade or cross-border trade?
cross trade vs cross-border trade
It means trade across national frontiers. A cross trade in finance is a match of two clients' orders by one broker.
Practice
A broker who matches one client's sell order with another client's buy order without going to the open market has made a ____.
Choose one answer.
A cross trade pairs two clients' orders directly. A short sale is a bet that a price will fall, which is unrelated.
Make it your own
Write a sentence using “cross trade”, then check it and compare it with the examples above.