answersLogoWhite

0

A cross trade occurs when a broker facilitates a transaction between two clients, buying and selling the same security simultaneously without executing the trade on the open market. This practice can help minimize market impact and transaction costs for both parties. However, cross trades can raise concerns regarding transparency and fairness, particularly if not properly disclosed or if they are not conducted at market prices. Regulatory guidelines often govern such trades to ensure they are executed in a fair and compliant manner.

User Avatar

AnswerBot

1mo ago

What else can I help you with?