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Glite Dictionary
🔄 Too many trades 🏢 Too much business
overtrading

overtrading

7.5
Buying and selling investments too often, causing high fees or losses
  • noun
  • /ˌoʊvərˈtreɪdɪŋ/
  • Specialized
translation icon : sobreoperación
  • Many new investors fall into the trap of overtrading and end up losing money on fees.

Examples

  • His habit of overtrading led to poor performance in his investment portfolio.

  • The financial advisor warned her client about the dangers of overtrading in volatile markets.

  • Many investors suffer from overtrading due to emotional decisions.

  • The overtrading of stocks can lead to significant losses.

  • Overtrading can lead to increased transaction fees that eat into profits.

  • Investors fear that overtrading will decrease their overall returns due to excessive costs.

  • The company's strategy of overtrading proved detrimental as it struggled to manage its cash flow.

How Often

overtrading
  • Specialized
7.5
occasional
285 2.8

Surface Forms

overtrading singular
overtradings plural

Morphology

overtrading = overtrade (transparent) = over + trade + ing

The step from 'overtrade' to 'overtrading' is a regular '-ing' nominalization and preserves the clear sense 'excessive trading'.

Etymology

Overtrading comes from the parts over- meaning 'too much' and trade meaning 'to buy and sell'. So overtrading really means 'trading too much', which helps you remember that making too many trades can cause high fees and poor returns.