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.
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