fade

Definitions (2)

1. In over-the-counter markets, the refusal or inability of a dealer to fill a buy or sell order on the price the dealer had published or quoted. Usually the dealer temporarily disappears (fades) from the trading scene. The option exchanges can also fade by erasing some published quotes. The SEC recognizes this 'trade-or-fade' practice as a legitimate mechanism that allows exchanges to dishonor an order if it exceeds their firm quote requirements. The SEC argues that if they do not allow this, the exchanges will have to refuse to trade at the published prices while continuing to display them.
2. Investment strategy that goes against the predominant market trend - buying when price is falling, and selling when price is rising. Based on sophisticated mathematical analysis, this high-risk contrarian approach ignores the possibility of the price trend continuing in the current direction. But it has the potential to yield extraordinary short-term gains.

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FAD multiple disappearing deductible