What is WASH TRADE

[Tekasky]

Hello dear trader's how are you doing today, how are your trades, I hope fine.

Have you ever heard the word "WASH TRADE"?

What's Wash Trade?

Wash Trade is manipulative process in the Forex market in which an broker simultaneously buy and sell the same financial instrument, currency pairs, stocks, crptocurrencies and other financial derivatives, creating misleading volumes, volatilities and spread in the Forex market.

First the investors will place a buy order simultaneously create a sell order for themselves or there cliques.

This act is carried out for some reasons.

To artificially hype the trading volumes, giving the currency pairs an impressive Outlook more than it is in real terms.
Such act is all use to generate indirect commission for broker's in expense to the retail trader's.
Some Brokage firm now have protections built in, sometimes mandatory for participants, such as STPF (Self-Trade Prevention Functionality)

Wash trading is deemed illegal in the United States since the passage of the Commodity Exchange Act (CEA), of 1936.

Many Brokerage firms that perform such dastardly act are forex firm that are new in the industry, they use all means that deems possible to increase the brokage fund in expense to the retail trader's.

Dear Trader's have you experience Wash Trading before? from these new Brokerage firms that are storming the forex market, those little broker's are not even purely licensed by standard regulatory agencies.

Most time you will experience a calm market that is going fine, you have done all your analysis but once you enter the trade immediately you start seeing some fast moves on the candle stick that was not there a jiffy ago, the volume and volatilities automatically increases then suddenly the market is against you and you lose money have it happened to you before?.

Precautionary measure to take as forex Trader.

1. Only trade with forex firm that have stood the test of time.

2. Choose a broker that have good customer service representative that are always active and transparent.

3. Check the website of the broker is it a professional websites, is the website interactive, or does it look like a copy and paste job.

4. Do they have good learning tools example Ebooks, tape's, CDs, live TV Analysis of the forex market.

5. Do they send you emails on market signal, news event and analysis.

6. How do the broker's and there trading platform relate with you is it for them to help you better your lot in the forex market or are they just for your money.

That is why I love Instaforex trading platform for they have all the aforementioned attribute and more they are professional and transparent in what they do. Cheers🙏.

[AbdulShiek]

Washing trade has widely discussed in the last month because it illegally boost the certain financial instrument trading volume.

[Mr. Cid]

Washing trade has widely discussed in the last month because it illegally boost the certain financial instrument trading volume.

No wonder, some financial instruments rapidly increase or decline even the absence of a big event.

[Newbie_trader]

I have trading account with Instaforex too! I salute to this broker when it comes to transparency. I always get a detailed explanation every time I ask.. Anyway, wash trading doesn't exist in a legit broker. So, it is very important to invest in a broker with a good reputation.

[Trader_Rob]

This definitely misleading and on top of that, illegal.

[Sendo12]

As far as I know, there are some exchange sites that do this in order to manipulate the market. They buy and sell on their own platform to make the market condition less favorable to traders.

[Wekesa]

I have actually used such , but it has never been simultinously but it worked well for me its workes for me in so many other ways that we cannot imagine that is why I love it, the good thing about working with this kind its to really define something good with it the work of every trader is to imagine they are working with the market with the rules and the rules must be followed rules must be followed.

[Njoki]

wow , isint it illegal in all angles, I thin this is and should not be allowed , but we need to really avoid market cheating , so its important to keep on trying as hard put together everything in something properly well advanced, thats why we need to be careful , be very careful in all that you do , the law can catch up with you even you @Wekesa, thats very dangerous