Investopedia explains 'Dual Trading'
Dual trading is a very controversial issue. Proponents say that when brokers are able to trade in their own accounts as well as those of their customers, they contribute to market performance and liquidity because personal broker trades make up a large portion of trading volume. On the other hand, opponents say that banning dual trading would not affect market liquidity, and would eliminate unlawful trading by removing any conflicts of interest.
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