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Feb 2, 2009

What is synchronised and circular trading in the stock exchange?

A synchronised trade is a transaction wherein the buy and sell order quantities are identical, and are put through at exactly the same time on the trading platform. Circular trades in a particular scrip happen when a closely knit set of market entities, mainly brokers, buy and sell shares frequently among themselves to push up the stock price. Since there are no genuine intentions to trade in the case of circular trades, the trading volumes thus generated are referred to as artificial volumes.

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