adverse selection

American  

noun

Insurance.

1. the process of singling out potential customers who are considered higher risks than the average.

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Example Sentences

Adverse selection refers to trading against market participants who have more information than you, potentially leaving you on the wrong side of the trade.

From Reuters

Although the existing rules appear to work tolerably well, the problems of nonpayment, disenrollment, and adverse selection might well be more serious under M4Am than they are under traditional Medicare.

From Salon

Adverse selection refers to trading against market participants who have more information than you, potentially leaving you on the wrong side of the trade, making larger trade sizes risky.

From Reuters

In May, IntelligentCross is launching a new order type called the Adverse Selection Protection Engine, or ASPEN.

From Reuters

That creates a problem that economists call “adverse selection.”

From Los Angeles Times