This practice is especially common in international funds as traders can exploit differences in time zones.

Question

Quizplus · Accepted Answer

Market timing refers to the practice of buying and selling securities based on anticipating market trends and exploiting market inefficiencies. This practice is often used in international funds where traders can take advantage of differences in global time zones. Late trading, insider trading, directed brokerage, and spinning are all different practices, but not directly related to exploiting time zone differences.

This Practice Is Especially Common in International Funds as Traders