What is a 'Fade'

A fade is a contrarian investment strategy used to trade against the prevailing trend. "Fading the market" is typically very high risk, requiring the trader to have a high risk tolerance. A fade trader would sell when a price is rising and buy when it's falling. Also known as "fading".

2. In a dealer market, it is the failure of a dealer to honor a quote when a customer or another dealer wants to trade.

Explaining 'Fade'

1. An example of fading would include buying on a dip in price and selling when the price rallies. Often it's a rather volatile strategy, but one which offers the potential for significant short-term gains. It requires little in the way of complicated analysis but the risk that trend continues is always present.

2. For example, if a better bid is posted on another exchange for a security and a market maker is unwilling or unable to match it for a client order, the market maker may offer to trade with the other market maker (with the better price). The market maker offering the better price must accept the offer and trade at the price offered or adjust the bid price.

Further Reading

Instructional leadership and the school principal: A passing fancy that refuses to fade away
www.tandfonline.com [PDF]
… The State Credit Worthiness" Should Fade out of the State Bank … 【References】, Chinese Journal Full-text Database, 10 Hits. 1, ZHOU Hao-wen,CHENG Lu(School of Economics and Finance, Xi'an Jiaotong University, Xi'an 710061, China);Financial Supervision and Bank …

Secure the shadow ere the substance fade
www.tandfonline.com [PDF]
… The State Credit Worthiness" Should Fade out of the State Bank … 【References】, Chinese Journal Full-text Database, 10 Hits. 1, ZHOU Hao-wen,CHENG Lu(School of Economics and Finance, Xi'an Jiaotong University, Xi'an 710061, China);Financial Supervision and Bank …

Gimme shelter or fade away: the impact of regional entrepreneurial ecosystem quality on venture survival
academic.oup.com [PDF]
… The State Credit Worthiness" Should Fade out of the State Bank … 【References】, Chinese Journal Full-text Database, 10 Hits. 1, ZHOU Hao-wen,CHENG Lu(School of Economics and Finance, Xi'an Jiaotong University, Xi'an 710061, China);Financial Supervision and Bank …

Does the price impact of flooding fade away?
www.emerald.com [PDF]
… The State Credit Worthiness" Should Fade out of the State Bank … 【References】, Chinese Journal Full-text Database, 10 Hits. 1, ZHOU Hao-wen,CHENG Lu(School of Economics and Finance, Xi'an Jiaotong University, Xi'an 710061, China);Financial Supervision and Bank …

Fade out/fade in: dead 1920s and 1930s Hollywood stars and the mechanisms of posthumous stardom
www.tandfonline.com [PDF]
… The State Credit Worthiness" Should Fade out of the State Bank … 【References】, Chinese Journal Full-text Database, 10 Hits. 1, ZHOU Hao-wen,CHENG Lu(School of Economics and Finance, Xi'an Jiaotong University, Xi'an 710061, China);Financial Supervision and Bank …

A Brief Simulation Model of China's Active Fiscal Policy——A Scenario Analysis of Continuity, Fade out and Strengthener
en.cnki.com.cn [PDF]
… The State Credit Worthiness" Should Fade out of the State Bank … 【References】, Chinese Journal Full-text Database, 10 Hits. 1, ZHOU Hao-wen,CHENG Lu(School of Economics and Finance, Xi'an Jiaotong University, Xi'an 710061, China);Financial Supervision and Bank …

Homocysteine levels and risk of essential hypertension: A meta-analysis of published epidemiological studies
www.tandfonline.com [PDF]
… The State Credit Worthiness" Should Fade out of the State Bank … 【References】, Chinese Journal Full-text Database, 10 Hits. 1, ZHOU Hao-wen,CHENG Lu(School of Economics and Finance, Xi'an Jiaotong University, Xi'an 710061, China);Financial Supervision and Bank …