InvestorsHub Logo
icon url

JLPTNG

06/28/11 10:36 AM

#7133 RE: Willy #7132

Hey Willy, You don't have to convince me....

Pre-arranged TradingWhat Does Pre-arranged Trading Mean?
Trading that occurs between brokers through an expressed or implied agreement or understanding.Investopedia explains Pre-arranged Trading

Prearranged trading is illegal under the Commodity Exchange Act and CFTC regulations because it may create an unfair market for other brokers and investors. For example, a commodity dealer might use pre-arranged trading to carry out risk-free trades at predetermined prices rather than at market prices to gain a tax advantage, thus limiting the market for other investors

Read more: http://www.investopedia.com/terms/p/prearrangedtrading.asp#ixzz1Qa76rvD7