What is ‘Bagging the Street’
An investor’s failure to avoid trading in the stocks that are part of a block and also within a specified amount of time. Bagging the street refers to a situation where an investor or a trader trades the securities shortly following initiation of the trade. Traders who frequently practice bagging the street will often have their margin requirements revoked by a brokerage.
Explaining ‘Bagging the Street’
Block trades are usually for large quantity of stocks; therefore, and thus can have an impact on the price of shares underlying the block, especially if those securities are illiquid. Therefore, traders who practice bagging the street will attempt to gain an unfair disadvantage if the block trade is large enough to impact stock prices. Once the block trade fully goes through and the market quickly absorbs the impacts, investors are free to resume their desired trading strategies.
Further Reading
- How useful is bagging in forecasting economic time series? A case study of US consumer price inflation – www.tandfonline.com [PDF]
- Bagging or combining (or both)? An analysis based on forecasting US employment growth – www.tandfonline.com [PDF]
- Robustify financial time series forecasting with bagging – www.tandfonline.com [PDF]
- Dynamic forecasting of financial distress: the hybrid use of incremental bagging and genetic algorithm—empirical study of Chinese listed corporations – link.springer.com [PDF]
- AdaBoost and bagging ensemble approaches with neural network as base learner for financial distress prediction of Chinese construction and real estate companies – www.ingentaconnect.com [PDF]
- Bagging constrained equity premium predictors – books.google.com [PDF]
- Optimizing the monthly crude oil price forecasting accuracy via bagging ensemble models – academicjournals.org [PDF]
- Identifying the Credit Level of a Company with Bagging-CART Integrated Algorithm – ieeexplore.ieee.org [PDF]
- Smooth Regimes, Macroeconomic Variables, and Bagging for the Short-Term Interest Rate Process – papers.ssrn.com [PDF]
