noun
- excessive trading in financial markets, often leading to increased costs and reduced profits
- conducting business beyond one’s financial capacity or resources
Usage: finance
Usage: business
Examples
- The day trader’s overtrading resulted in significant losses due to transaction fees.
- Overtrading can quickly erode profits even when individual trades are successful.
- The company’s overtrading led to cash flow problems and eventual bankruptcy.
- Financial advisors warn against overtrading in volatile markets.
- His overtrading strategy backfired when he couldn’t cover his positions.
- The business failed due to overtrading beyond its means.