How do regulations prevent market manipulation in day trading?
Did you know that in the world of day trading, the only thing more colorful than the charts is the creativity of market manipulators? Regulations play a vital role in safeguarding day traders by preventing manipulation that can distort market integrity. This article delves into how various laws, including SEC and FINRA rules, work to protect traders, identify illegal activities, and ensure fair price discovery. We’ll explore the specifics of how these regulations combat pump-and-dump schemes, the penalties for violators, and how trading platforms monitor for suspicious behavior. Understanding these mechanisms is crucial for any trader looking to navigate the
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