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Bloodletting

March 27, 2022
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Index Arbitrage

March 27, 2022

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The process of grouping large orders together rather than allocating these orders up front. In other words, it involves combining odd-lot orders (small and non-standard orders)- for the same security- from multiple clients into a round lot in a bid to save the old-lot differential. This results in the so-called bunched orders.

It is also known as consolidating orders or order consolidation or executing in-house crosses.

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