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Trade Busts - What Are They and How Do They Work?
A trade bust is a full reversal of the trade, they just negate it like it never happened. A price improvement is if you got a backfill and you're willing to sort of refund you some of the money or kind of make your price better after the fact. In that case, it's more safe to bust a trade because if they busted again, they've completely reversed that trade. But what if the market actually continues to go down? You could easily wind up with a loss that's even greater than what you suffered as a result of that fill.