Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
I ran into something very confusing with the CME and I just like to hear some responses from you guys that are more experienced than me.
When I sell and buy into a momentum trade it can happen that I am selling and buying at the same price. This is then called a wash trade, but this is not something we have control over (unless your buy is a buy-at-limit, but I use buy-at-market to make sure I am filled)
So to say it short. I set a target at for example $100 and set a buy at the market at 1 tick above the target, but the market is crazy and would perhaps fill it at the same price, am I still legal??
Can you help answer these questions from other members on NexusFi?
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,386
Thanks Received: 10,207
In terms of what the exchanges are trying to prevent a wash trade also needs to be 'at the same time'. Obviously this is different than the expression 'washing a trade' which means getting out of trade at the same price as you entered. So buying at 2540 and selling at 2540 a few seconds later is not a wash trade in the exchanges eyes.
Wash trading is a process whereby a trader buys and sells a security for the express purpose of feeding misleading information to the market.
OK, this makes sense, but how about a trade where you sell at price x and buy back at price x+ 1 tick at almost the same price? This could happen is the same second (in theory)
Well, I did my due diligence in asking the more professional traders amongst us. I consider myself still an amateur, even when I am doing very well with my trading. Thanks again, really appreciated the reactions.
