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Wash Trading

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A trader or corporation participates in wash trading, a dishonest activity in financial markets, including cryptocurrency exchanges, where they buy and sell the same commodity to inflate transaction volume and price movements.

Wash trading’s main objective is to influence market sentiment or create the illusion of liquidity in order to draw in other traders. Due to the distorted market data and potential for erroneous market perceptions, it is regarded as immoral and unlawful in many jurisdictions.