Secured Funding

Forex Blog Trading Tips - Forexmospherians.com

Insider trading and insider information?

Is there such a thing as insider trading and insider information?

Perhaps to begin with, we should examine what this means and then decide whether or not it is possible.

An insider is a person who can access an organisations non-public information.

This could be employees handling or accessing valuable data, ranging from the accountants, solicitors, directors, CEO’s and anyone else connected in some way.

This includes friends, acquaintances and even Government officials. Furthermore, if the insider was passing information in the way of tips to "others" , and or if someone owned stock valued at more than 10% of the corporation’s equity, then they too would be seen as insiders.

Therefore, insider trading would occur as soon as these persons engaged in the actual buying or selling of the security.

So it follows, insider trading is illegal if the content is non-public and gives an unfair advantage.

Insider trading is only legal if the information is fair, open and public.

Insider information is a non-public fact of a publicly traded company. When the information forms or is in part at least a source that could provide a financial advantage in a securities market.

In the USA an example of legal insider trading is when the “insider” discloses their buying and selling activities and follows the rules set out by the Securities and Exchange Commission by submitting their proposed financial activities openly and in a timely manner.

The primary task of SEC is to prevent fraud.

Security and Exchange Commission short video:

An example case is when the Securities and Exchange Commission brought charges against Martha Stewart, Broker Peter Bacanovic for Illegal Insider Trading and is definately worth reading on the link below:

Washington, D.C., June 4, 2003 -- The Securities and Exchange Commission today filed securities fraud charges against Martha Stewart and her former stockbroker, Peter Bacanovic.

Further reading on insider trading information:  https://www.investopedia.com/ask/answers/what-exactly-is-insider-trading/

What About Forex?

Insider trading and insider information for Forex is pretty much not a crime unless its a Goverment Official act.

The problem is though, Foreign Exchange is the largest and most liquid market on the planet and because of the volume, size and scope makes it difficult to regulate and implement compliance.

The rules between securities and forex/commodities are very different in that the main purpose of insider trading laws are to protect the banks from each other and then the consumer.
In forex and the commodity Markets there are plenty of people with insider information but this is unlikely that a single bank will have this information all to themselves. Therefore this makes insider trading laws so much weaker for commodities and pretty much non-existent for forex. There are of course several governmental and independent bodies which supervise foreign exchange trading around the world but no single and centralized body governing the foreign exchange or currency trading markets. The global supervisory bodies regulate forex by setting compliance standards which all brokers under their jurisdiction must adhere to. These compliance standards include being registered and licensed with the regulatory body, those companies then undertake routine and periodic audits. Sending regular updates and communicating changes of broker service to their clients. This does go some way to give reassurance that currency trading is ethical and fair for all involved.

 Forex Markets short video:

In summary, we can say that Insider Trading and Insider information sharing are regular everyday events in all markets, some legal, some dubious, some totally immoral and illegal.

_____________________________________________________

Hope you enjoyed the post and hope you develop a Kraken Forex Strategy to help your trading gain an edge which is insider trading and information!

Best Regards,

Sir Gissachance

Sir Gissachance (PPND)
Forex Trader and Senior Technical Analyst
Currencies USD, EUR, GBP, JPY, AUD, CAD, NZD, HKD, CHF, All.
Previous contributor and lead Trader: Secret Forex Society (SFS), IRC Forex, FXStreet, Forexmosgate, Forexmospherians.com
Market Alerts - Forex Trading and the Wisdom of the Crowd, Forexmospherian Currency Kraken.
Youtube Trading Videos.
Facebook, Twitter, Gplus

Comments

  • Another extremely interesting and educational trading blog as usual Sir Gissachance and thanks for taking the time to write and post, great job bud.

  • I totally agree with F, excellent blog post Sir Gissa thanks for sharing

  • Excellent post Sir Gissachance and highly recommended reading. - Holmes

This reply was deleted.

You need to be a member of Forexmospherians - Forex Traders Social Network to add comments!

Join Forexmospherians - Forex Traders Social Network

Helpful Hints

Share a Trading Tip, Trick, Knowledge or Technique with the Community. Try to avoid just simply posting a link or video and saying this is great. Explain what makes it great or how this was useful. Sometimes things are simply entertaining but still useful and so explain in detail with diagrams, photos or charts. Descriptions with as many details are always interesting to read and so say what could be useful to know here. Community members are welcome to comment, ask questions or add to a post.

"Keep a Record of the Business or Currency Pair Traded. Reasons why the Trade was taken. When was the Exit. How and why the Trade turned out the way it did"

"It's my pleasure to be part of this forum, which is always different than other places & with a friendly environment. Glad to be in this team"

"Yes, the truth requires neither our belief nor understanding. However to harness truth and apply it for our benefit we must at a minimum allow that it is possible".

"We all know we will never be 100% Accurate with 100% win rate over 100's or 1000's of trades - but as long as your winning pips and money - add up to a lot more than your losing pips and money - then "Bingo" you are successful winning FX trader"

"I figured this was a legitimate break, so I went on the hunt for evidence, so here in succession is the list of clues I used to make my decision:

Rejection of market and weekly pivot at ema confluence.

Complete and broken head and shoulders on 1hr time frame.

Broadening formation on daily with test and rejection of 200 day ma

Bull hinge on daily and Renko stochastic.

Positive momentum on 5min, 1hr, 4hr and daily chart"

"Remember that all models are wrong; the practical question is how wrong do they have to be to not be useful" - George E. P. Box

"Sometimes You Win,

Sometimes you Learn".

"Forex Market analysis relies on two types of analysis much like Stock Markets:

Technical Forex Market Analysis views the data on a chart and considers that the News and Data is built into the Price already (economic, political, social, sentimental and psychological). Various tools and indicators will be used by technical traders, for instance MACD, Bollinger Bands, Moving Averages and more.

Fundamental Forex Market Analysis also uses indicators, for instance reports, Gross Domestic Production (GDP), Retail sales, Consumer spending, Industrial Production, Consumer Price Index, Commodities, Economic Calendars, Balance of Trade levels which could identify Trends between other Nations and more."

"Short rapid bursts and quick glimpses of an entry, trigger activated, trail in place and exit strategy and plan already set. Within a blink of an eye, instinctively the buy/sell button is pushed. The hammer falls and clanks decisively, echoing, sparking, like steel upon steel and the trade is executed. A Traders heart beats on with perfect set up, closely aligned with strict parameters, ready to continue the attack or recoil on a wire. Wrap the profit and then stand down, ready for the next hunt"

"When we are talking about sentiment it is very hard to say that this sentiment will prevail another 6, 9, 13 hours. Sentiment is not a constant line. Main trend is bearish, tech picture on daily is bearish, even intraday neutral. Nobody restrict to play long eur short usd position with the target at 1.12 or even 1.1361, this is every traders individual choice as always"