Backing Away

Backing Away - Backing away means to withhold, remove, or withdraw interest on a valid offer of a valid bid on any given security when the quantity and price are accurate. This is commonly done by brokers and dealers, although each time this happens, and the dealer or broker backs away, they are assuming the risk of violating the regulations laid our by NASD that oversee this action type. Penalties could be severe, so taking this type of action is not recommended.