Nathaniel William_ Rivera#2

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What is information leakage in forex markets?

Information leakage occurs when sensitive data—like client orders, central bank actions, or political announcements—reaches some traders before others. Example: a bank desk knowing about a huge corporate order may front-run it. Benefits for insiders: profit from unfair advantage. Risks: illegality, regulatory action, and broken trust. Institutions fight leakage with strict information barriers and surveillance. Retail traders cannot prevent leakage but can mitigate by avoiding illiquid venues where abuse is easier. Transparency and strong regulation are the only defenses. Information leakage shows why best-execution rules exist—to protect fairness in forex.