Matthew Adam M_ Rivera#48

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What is insider trading and does it exist in forex markets?

Insider trading involves profiting from non-public material information. In equities, this means trading ahead of earnings or mergers. In forex, insider trading occurs when traders act on unreleased government data, central bank decisions, or political leaks. Example: accessing payroll data before NFP releases. Institutions face strict penalties for such practices, with regulators monitoring communication and trade timestamps. Retail traders rarely encounter insider info but should be wary of “signals” claiming access to secret data. Risks: legal consequences, reputational damage, and distorted market fairness. Benefits: regulators’ crackdown preserves market integrity. Understanding insider trading helps traders recognize that ethical boundaries are enforced globally—and shortcuts via illicit information often end careers.