Insider Trading
Insider trading is trading based on material non public information when prohibited by platform rules or regulation.
Definition
Insider trading is trading on material non public information in a way that violates platform rules or applicable regulation. The exact definition depends on the product, jurisdiction, and platform rulebook.
Why it matters
Insider trading undermines trust and discourages legitimate participation. It also creates legal and compliance risk for platforms, market makers, and users.
What users should look for
• Platform rules that define prohibited information and restricted participants.
• Monitoring and enforcement policies.
• Clear escalation paths for suspicious activity.
Common pitfalls
Assuming it is always allowed: Rules differ across platforms and markets.
Confusing public rumors with public information: Public availability is not the same as widespread awareness.