DWN’s innovative podcast series with AI hosts, Al & Ivy, presents the most topical subject of the week and discusses it in an easy to understand conversation from AI-generated personas.
CLICK HERE TO LISTEN TO THIS WEEK’S PODCAST
…OR SCROLL DOWN AND CLICK ON THE YOUTUBE LINK BELOW
In this week’s episode of the Al & Ivy (AI) Podcast, the hosts shine a light on a deceptive market tactic that often hides beneath the surface of trading activity: What exactly is circular trading, and why does it pose such a serious threat to market integrity?
Drawing from a detailed explainer published by Tickeron, the episode unpacks how circular trading schemes use coordinated, repetitive buy-and-sell orders to create the illusion of genuine market demand — without any real transfer of ownership or investment intent. This artificial volume can lure unsuspecting investors into believing a stock is gaining momentum, only for prices to crash once the manipulation stops.
What is circular trading, really?
Circular trading is a form of illegal market manipulation in which groups of traders — sometimes acting through multiple accounts — buy and sell the same security back and forth to each other. By inflating trading volume and stabilizing prices, they fabricate interest in a stock and distort how the market perceives its value. This tactic is especially common in penny stocks, thinly traded names, and IPOs vulnerable to hype.
Why is it dangerous?
The Tickeron analysis highlights three core risks:
• False market signals: Inflated volume convinces ordinary investors that a stock is attracting legitimate demand.
• Artificial pricing: Prices rise not because of real fundamentals, but because manipulators are creating the appearance of activity.
• Steep investor losses: When the scheme ends — or is exposed — the illusion collapses, leaving latecomers holding shares at inflated prices.
Who gets hurt?
These schemes tend to target inexperienced traders, momentum chasers, and investors who rely heavily on volume screens. Once the manipulative cycle stops, stock prices can plunge abruptly, producing severe financial losses and damaging public trust in financial markets.
Bottom line
Circular trading isn’t just a niche form of misconduct — it’s a direct attack on the fairness and transparency that capital markets depend on. The Al & Ivy Podcast breaks down how this ruse works, why regulators treat it as a serious offense, and how investors can protect themselves from being misled by artificially engineered trading activity.
Original Content Source for Podcast:
“What Is Circular Trading?” | Tickeron | https://tickeron.com/trading-investing-101/what-is-circular-trading/
CLICK HERE OR IMAGE BELOW TO LISTEN TO THE PODCAST ON YOUTUBE
