Circular Trading

Circular Trading is a term related to share markets. Circulating trading involves the members of an exchange for a cartel and trade among themselves in order to create huge false volumes and rigging the price of the shares and thus misleading the common investors into a trap.

It is different from Insider Trading which involves a corporation’s stock or other securities (e.g. bonds or stock options) by individuals with potential access to non-public information about the company.

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