Business and Personal Finance Dictionary

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• BUCKETING OR TO BUCKET TRADES
  
  Refers to several illegal activities. Most common is the holding of customer orders by a broker who does not report an immediate execution to the client. In this case the broker would try to take advantage of a known buy (or sell) and do an intermediate trade for himself. For example, a customer gives a market order to buy and the broker executes an immediate transaction. However, the market advances and then the broker sells the instrument at which time he fills the customer order. The client then missed the benefit of the lower price. Sometimes, the term is used for the action of inappropriately using a client's funds for unauthorized trading.
  
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