From Longman Business Dictionaryovertradeo‧ver‧trade /ˌəʊvəˈtreɪdˌoʊvər-/ verb [intransitive]1ACCOUNTINGCOMMERCEif a business overtrades, it does not have enough WORKING CAPITAL (=available cash) to pay its CREDITORs (=people and organizations it owes money to) and employeesDirectors of a tour operating company have to give financial guarantees which will be used if the company overtrades and then fails.2FINANCE if a BROKER overtrades, they buy and sell investments for customers more often than they should, in order to increase the amount of COMMISSION they earnSYNCHURN —overtrading noun [uncountable]Before expanding, arrangements must be made for the higher cash requirements needed for this. If not, there is a risk of overtrading.The securities house imposed fines for overtrading habits that in fact were encouraged.
