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Wash Trading

Entering into, or purporting to enter into, transactions to give the appearance that purchases and sales have been made, without incurring market risk or changing the trader’s market position.

The Commodity Exchange Act prohibits wash trading.

Additional Comments:

Also called round trip trading, wash sales.

Related Terms:

Risk Reversal
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Sales Load
The sales fee that the buyer pays in order to acquire an asset. ...

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