wash trading

Definition of "wash trading"
  1. Engaging in seemingly legitimate transactions without any financial risk or change in market position, primarily to create the illusion of active trading
How to use "wash trading" in a sentence
  1. The trader was penalized for wash trading since it manipulates market activity.
  2. To show vibrant portfolio activity, some brokers may engage in wash trading.
  3. Unexpected volatility in the stock indicated possible wash trading activity.
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