Terms Beginning With 'w'

Wash Trading

  • January 09, 2020
  • Team Kalkine

Wash trading is ideally regarded as a means of market manipulation. In this process, a trader buys and sells the same security with a known intent to create artificial activity in the market which is misleading in nature. The intent of this act, illegal in a few countries, is to artificially increase trading volume and generate commission fees to brokers. Mostly, cryptocurrency exchanges and High-frequency trading firms use this concept.

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