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Glossary

Pump and dump

A pump and dump raises the price of a thinly traded instrument through buying and misleading promotion, then sells into the demand it created. It is typical in small-cap shares and crypto-assets.

Why it matters for brokers and payment firms

Brokers offering CFDs or shares on small caps and tokens can see clients coordinate buying, or promotion in groups followed by selling. Linked accounts trading the same instrument in the same direction are a signal.

Related terms

On this site

Trade surveillance for FX/CFD brokers

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