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What is Cross Trade? – Definition, Example, Allowable, and More

cross trade

Cross Trade Definition

A cross trade is a practice where the business that bought and sold for the asset offset without recording its transaction on the exchange.

And most exchange platforms do not permit cross trading. A cross trade legally executes when a broker matches a buy and sell for the same security for two separate client accounts.

And then reports them as a “cross trade” on the respective exchange.

What is Cross Trade Example?

When are Cross Trades Allowable?

Who is Cross Trading aimed at?

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