Hey guys, I will be stating some facts here today regarding CFD manipulation! Yes, you heard it right, the world of the stock market is so manipulated; one reason is that it is legal and it is a quick way to earn money, pretty satisfying too. Many people disagree with this point of view and continue to state their facts, saying that CFD markets are not rigged. Still, as far as I have grabbed the learnings and information about the working procedures of CFDs, they are manipulated to a great extent.
This works in making the circumstances fall into such patterns that the results lie in attempting to influence and cause a loss in the capital of other financial markets. It is basically to control a stock market in such a way that causes variation in the price and supply of a product, a share, or a currency pair.
What is CFD Manipulation?
This manipulation is all artificial and works in numerous ways. You might be wondering if this manipulation can be detected and avoided? Well yes. You can get a hold of this by having a piece of complete and thorough information about CFD and how the world of the stock market works. If you want to know more about this, i’d suggest reaching out to the Chargebacking experts. Their investigative agents know all th eins and outs of the market to ensure our protection!
Market manipulation works by artificially increasing or decreasing the stock prices of a specific product to benefit yourself by pushing the supply and demand into your desired and favoured directions. This works in fake ways by creating illegal information about something, counterfeit reports, reviews, price reports, or orders which eventually influence the market price of a specific product. And these factors, including announcements and messages, affect the supply and demand for an asset.
Stocks, Currencies, Commodities & More
It is thought to influence the stocks, currencies, or commodities, but it can easily manipulate overnight interest rates by making them increase or decrease.
There are some laws introduced and applied in some countries which attempt to stop the spreading of false information in the form of reports, orders, and fake posts, artificially inflating or deflating digital currency prices but some countries still lack such laws enforcement.
I have not personally faced such consequences of falling prey to such manipulation, but a friend of mine did. So basically, my friend invested money for the first time in shares of a company. At that time, a prominent investor started to sell his shares at a high rate which caused him to profit. The stock price went low, so my friend sold the shares at a loss. After a time when the prominent investor thought they had made enough profit out of claims, they started to buy again. My friend thought this time the shares might go up, and the same manipulation strategy was applied, and unfortunately, my friend had to face another loss which was discouraging, but such market manipulations can not be monitored or held accountable for.
