Definition

The practice of buying more goods than one can afford, leading to financial difficulties or market oversupply.

Example

Overtrading can lead to serious financial problems for a business.

Conversation

Have you heard about overtrading in the market lately?

Yeah, I read that it can really hurt businesses.

Exactly! It's surprising how many people still do it.

I know, right? It just creates more problems than it solves.

Synonyms & Antonyms

Root Explanation

Overtrading → It is formed from "over-" (meaning excessively) and "trade" (from Old English *tradian*, meaning to barter or exchange). The word "overtrading" means engaging in excessive trading or transactions beyond a sustainable level.

Memory Tip

Think of doing too much trading or exchanging — 'over-' means excessively, and 'trade' refers to the act of bartering.

Visually Confused Words