Abusive Trading Definition: 149 Samples | Law Insider (2024)

Abusive Trading

means the following actions, but not limited to, pip-hunting, scalping, arbitrage, manipulations or exploitation of any temporal and/or minor inaccuracy in any rate or price offered on the Trading Platform, a combination of faster/slower feeds, use of any robots, spiders or other automated data entry system with the Trading Platform (unless the Client receives express written consent by the Company prior to activating the robot), violation of the Client’s obligations under paragraph 2 of Appendix.

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Abusive Trading

means the following actions, but not limited to, pip-hunting, scalping, arbitrage, manipulations, a combination of faster/slower feeds, violation of the Client’s obligations under paragraph 15.16 of the Client Agreement.

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Abusive Trading

shall include any of the following actions such as, but not limited to scalping; Sniping; Pip-hunting; placing “buy stop” or “sell stop” Orders prior to the release of financial data and news related to the Underlying Market/Asset; arbitrage; manipulations; a combination of faster/slower feeds; abuse of the cancelation of trades feature available on the Platform; use (without the prior and written consent of the Company) of any robots, spiders or other automated data entry system with the Platform (unless you receive express written consent by the Company prior to activating the robot) or use of any software, which applies artificial intelligence analysis to the Platform(s) and/or Client Account; entering into transactions or combinations of transactions (voluntarily and/or involuntarily) such as holding long and short positions in the same or similar Underlying Assets at similar times either by the Client or by the Client acting in concert with others, possibly with connected accounts, including (but not limited to) between accounts held with different entities within the Company, which taken together or separately are for the purpose of manipulating the Platform for gain. Abusive Trading constitutes an event of Default giving the Company the right to take action under paragraph 14.2 of this Client Agreement.

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Examples of Abusive Trading in a sentence

  • Improper or Abusive Trading The Company’s objective is to provide the most efficient trading liquidity available in the form of streaming, tradable prices for most of the financial instruments we offeron the trading platform.


More Definitions of Abusive Trading

Abusive Trading

means the following actions, but not limited to, pip-hunting, scalping, arbitrage, manipulations or exploitation of any temporal and/or minor inaccuracy in any rate or price offered on the Trading Platform, a combination of faster/slower feeds, use of any trading robot computer programs (i.e. non-exhaustive examples of trading robot computer programs include; a script, a spider, an expert advisor, an MQL robot, an algorithmic robot, any type of code that places automatically orders on the Mt terminal, or any kind of external automated robot (bot) i.e. computer code that controls the MetaTrader terminal externally) (unless the Client receives express written consent by the Company prior to activating the trading robot computer program) , spiders or other automated data entry system with the Trading Platform for scalping and/or for exploiting feed latency or flooding the system with pending orders with no intention to execute them.

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Abusive Trading.

The client understands and accepts that he/she must not conduct any abusive trading techniques such as, but not limited to scalping, placing of ‘Buy Stop’ or ‘Sell Stop’ orders before the release of any financial data, arbitrage, system or platform manipulation. In such cases, the Company reserves the right to take one or more of the following actions:

Abusive Trading

shall include any of the following actions such as, but not limited to placing "buy stop" or "sell stop" orders prior to the release of financial data, arbitrage, manipulations, lag trading, usage of server latency, price manipulation, time manipulation, hunting of trading benefits, a combination of faster/slower feeds, abuse of the cancelation of trades feature available on the Platform or use (without the prior and written consent of the Company) of any software, which applies artificial intelligence analysis to the Company's systems and/or Platform(s) and/or Client's Trading Account;

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Abusive Trading

means and include any of the following actions such as, but not limited to placing “buy stop” and/or “sell stop” order(s) prior to the release of financial data and news related to the Financial Instrument, arbitrage, manipulations, a combination of faster/slower feeds, abuse of the cancelation of trades feature available on the Platform, the use (without the prior and express written consent of the Company) of any software/system (e.g. Expert Advisor(s), Trading systems/programmes, robots, spiders and/or any automated data entry system), or overwise any software/system, which applies artificial intelligence analysis to the to the Company’s systems and/or Platform(s) and/or Client Account.

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Abusive Trading

means the following actions, but not limited to, pip- hunting, scalping, arbitrage, manipulations or exploitation of any temporal and/or minor inaccuracy in any rate or price offered on the Trading Platform, a combination of faster/slower feeds, use of any robots, spiders or other automated data entry system with the Trading Platform (unless the Client receives express written consent by the Company prior to activating the robot), violation of the Client’s obligations.

Sample 1Sample 2

Abusive Trading

means the following actions, but not limited to, pip-hunting, scalping, arbitrage, manipulations or exploitation of any temporal and/or minor inaccuracy in any rate or price offered on the Trading Platform, a combination of faster/slower feeds, use of any robots, spiders or other automated data entry system with the Trading Platform (Use of robots, automated trading systems and generally algorithmic trading and high frequency algorithmic trading through the CIF’s Platforms must be permitted only with the CIF’s prior written consent), violation of the Client’s obligations under paragraph 2 of Appendix.

Sample 1Sample 2

Abusive Trading

shall include any of the following actions such as, but not limited to pip-hunting, placing “buy stop” or “sell stop” Orders prior to the release of news relevant to the Underlying Market or Asset, arbitrage, manipulations or exploitation of any temporal and/or minor inaccuracy in any rate or price offered on the Platform, a combination of faster/slower feeds, abuse of the cancelation of trades feature available on the Platform (Abuse of the Cancelation feature will be considered as an abuse if the Client canceled positions accede 20% of the number of executed trades from its last 25 positions) or use (without the prior and written consent of the Company) of any robots, spiders or other automated data entry system with the Platform, use of any software which applies artificial intelligence analysis to the Company’s systems and/or Platform(s) and/or Client Account.

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Abusive Trading Definition: 149 Samples | Law Insider (2024)

FAQs

What is abusive trading? ›

Abusive Trading means the following actions, but not limited to, pip- hunting, scalping, arbitrage, manipulations or exploitation of any temporal and/or minor inaccuracy in any rate or price offered on the Trading Platform, a combination of faster/slower feeds, use of any robots, spiders or other automated data entry ...

How do US laws define insider trading? ›

Insider trading is when non-published information from a company is used to make a trading decision by someone with an invested interest in that company. It is illegal to engage in insider trading, but it is legal to trade your company shares as long as you follow the guidelines set by the SEC.

What are the 7 behaviors that qualify as market abuse? ›

  • 3.1 Insider dealing.
  • 3.2 Unlawful disclosure.
  • 3.3 Misuse of information.
  • 3.4 Manipulating transactions.
  • 3.5. Manipulating devices.
  • 3.7 Distortion and misleading behaviour.
  • 6.1 Swedish bank fined nearly €300,000.
  • 6.2 Imprisonment and a £35,000 fine for insider dealing.
Jan 16, 2024

What is trade abuse? ›

In economics and finance, market abuse may arise in circ*mstances in which investors in a financial market have been unreasonably disadvantaged, directly or indirectly, by others who: have used information which is not publicly available (insider dealing)

What is not considered insider trading? ›

For example, a person in a restaurant who hears the CEO of Company A at the next table tell the CFO that the company's profits will be higher than expected and then buys the stock is not guilty of insider trading—unless he or she had some closer connection to the company or company officers.

What is the burden of proof for insider trading? ›

Burden of Proof in Insider Trading Cases

The government must prove that a defendant bought or sold one or more securities “on the basis of material nonpublic information about that security or issuer,” according to the SEC's Rule 10b5-1, 17 C.F.R. § 240.10b5-1.

What are the elements to prove insider trading? ›

The Supreme Court proscribed 4 elements to prove insider trading under the misappropriation theory, 1) a lie or deception 2) a transgression of a fiduciary obligation 3) the use of secret information in relation to a securities transaction 4) willfulness by the defendant.

What is toxic trading? ›

Toxic trading encompasses a variety of behaviors and practices, with some common characteristics including the following: ​ ​ Excessive Risk-Taking (Over-Leveraging) Participating in trades with disproportionately high levels of risk in relation to the trader's capital or risk tolerance.

What is manipulative trading? ›

Market manipulation may involve techniques including: Spreading false or misleading information about a company; Engaging in a series of transactions to make a security appear more actively traded; and. Rigging quotes, prices, or trades to make it look like there is more or less demand for a security than is the case.

What is an example of illegal trading? ›

Illegal Insider Trading

For example, suppose the CEO of a publicly traded firm inadvertently discloses their company's quarterly earnings while getting a haircut. If the hairdresser takes this information and trades on it, that is considered illegal insider trading, and the SEC may take action.

What is aggressive trading? ›

Aggressors are traders that take liquidity out of the markets. Rather than entering bids for shares, aggressors buy at-market at the current ask price. They will also sell at the current at-market bid prices rather than specifying a selling price.

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