Pоpulаr quеstiоn: Whаt is insidеr trаding?

Discussion in 'Forex - Currencies Forums' started by Benoit W, Mar 21, 2016.

  1. Benoit W

    Benoit W Well-Known Member

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    Insidеr trаding is еssеntiаlly in а nutshеll thе trаding оf stосks оr sесuritiеs оf а соmpаny/соrpоrаtiоn by а pеrsоn оr pеrsоns with knоwlеdgе оr infоrmаtiоn аbоut thе соmpаny thаt is nоt publiс knоwlеdgе.
    In mоst саsеs insidеr trаding is lеgаl. Hоwеvеr, thе prасtiсе bесоmеs illеgаl whеn “mаtеriаl” nоn-publiс infоrmаtiоn is оbtаinеd аnd usеd tо prоvidе аn еdgе оr аdvаntаgе. This is pаrtiсulаrly tаrgеtеd in thе USА аnd Gеrmаny whеrе thе trаdеr is оf substаntiаl pоsitiоn, аnd оwns а signifiсаnt pоrtiоn оf thе соmpаny’s еquity sесuritiеs.
    Оnе оf thе mоst prоfitаblе prасtiсеs fоr insidе trаdеrs, аnd оnе thаt is lеgаl, is tо prоfit frоm оpеn mаrkеt rеpurсhаsеs.
     
  2. remnant

    remnant Well-Known Member

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    Insiders are those who have non-public access to information about a corporation. They also include those with ownership of a stock that is more than 10% of a firms' equity. Insider trading can be legal when an insider buys and sells shares of a firm when properly registered with the Securities Exchange Commission. It becomes illegal when they use undisclosed information for profit and can be done be done by co-executives, friends and relatives. Insider trading is detected when no material news is issued to the public and the trading volume of a particular stock increases dramatically.
     
  3. radex78

    radex78 Senior Investor

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    So many market participant in forex market, big company institution and many bank around the wold ,and still many speculator in this market, and actually although as small part we as retail tarder also become part in forex insider
     
  4. kirtimeliwal

    kirtimeliwal Senior Investor

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    The iillegal practice of trading on the stock exchange means one person take advantage through having nonpublic access to confidential information. Insider trading is the act of buying or selling of stocks through someone who has access to material nonpublic information about the security. Insider trading can be both illegal or legal it totally depends on when the insider makes the trade. It is illegal when the information is nonpublic.
     
  5. rakhi

    rakhi Active Member

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    Insider trading is the buying or selling of a security by someone who has access to material nonpublic information about the security. ... It is illegal when the material information is still nonpublic.
     
  6. gowiththeflow

    gowiththeflow Senior Investor

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    As far as I am aware there is no scenario where trading on non-public information is anything but illegal? You might get away with it if you can prove you were already going to trade the shares before finding out the non-public info, e.g. dealing in relation to your tax affairs, but even this might sound a little far fetched to the regulators :)
     
  7. Linda Smith

    Linda Smith Senior Investor

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    Trading in forex is not a game. If you want to be a trader in forex market, you should know the basics of forex. You can learn about forex from different sources, such as: Senior traders, e-books, different types of forex books. But above all, I think the best source to learn about forex is a demo account. You can easily learn all the basics of forex from demo account. I am also a trader. I am trading with TP Global FX. When I was entering into the forex I also opened a demo account. It helped me to learn all the tools and techniques about forex practically.
     

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