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Wash trading is buying and selling to yourself to create the illusion of volume, which is fraudulent. Buying OTM call options on an exchange does nothing to dis
by quickthrowman 6y ago
Wash trading is buying and selling to yourself to create the illusion of volume, which is fraudulent. Buying OTM call options on an exchange does nothing to distort volume or manipulate price, it’s simply part of price discovery, just like buying or selling shares.
- Rury 6y agoThis scenario is not just "buying OTM call options", just like wash trading is not just "buying stock". This is the problem with your argument. You oversimplify the issue. Wash trading is a way of buying/selling stock, (namely by one party at the same time), which can be abused to manipulate prices. Just like what is happening here is a way of buying stock and its options (namely by one party at the same time, repeatedly), which can be abused to manipulate prices.