Wash Trade
Definition
Wash trades are manipulative transactions that create a misleading impression by artificially increasing trading volume and liquidity and are generally considered illegal.
Wash trades are transactions that are generally made to manipulate the market, not to make a profit. In such transactions, no commercial activity actually takes place; However, an attempt is made to create a misleading impression by artificially increasing transaction volume and liquidity. This may affect the balance of supply and demand in the market, causing prices to artificially rise or fall. Wash trades are generally considered illegal and threaten market integrity.
This entry is part of the JrKripto crypto glossary. We explain key terms and concepts to help investors and traders understand the cryptocurrency market. Clear definitions support better decision-making and risk management.
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The JrKripto crypto glossary explains important terms and concepts so investors can understand the market better. Clear definitions support decision-making and risk management. Each entry has a short definition and, where useful, an extended explanation for quick reference or deeper reading.
The glossary covers a wide range of topics from trading and DeFi terms to blockchain infrastructure and market indicators. You can find terms via search or the term list. Use the related terms section to discover related concepts.
