dual trading

Definition of "dual trading"
  1. When a floor broker makes trades for both their own account or an account they have an interest in and for customer orders on the same day, or when a futures commission merchant holds customer accounts and allows employees to trade in accounts with a proprietary interest on the same day
How to use "dual trading" in a sentence
  1. The broker was accused of dual trading after he executed customer orders and made trades on his own account on the same day.
  2. The brokerage firm was investigated for potential dual trading when it was discovered that employees were making trades in accounts they held a proprietary interest in and managing customer accounts on the same day.
  3. An audit determined that the futures commission merchant was in violation of regulations due to dual trading.

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