this post was submitted on 04 Sep 2024
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[โ€“] CanadaPlus@lemmy.sdf.org 4 points 2 months ago (1 children)

They'd still hide it, exactly so people can't scoop them this way.

[โ€“] Kwakigra@beehaw.org 1 points 2 months ago (1 children)

This I think is wishful thinking. If they already made the trade and profited, they're not going to care about the people scooping according to what they did. If the followers-on like me overinflate or kill the asset depending on what the cheater did all it would do is damage the economy. If you are in a position of aristocratic privilege such that insider trading is possible for you, destroying the economy is an opportunity to acquire assets at a bargain.

[โ€“] CanadaPlus@lemmy.sdf.org 2 points 2 months ago* (last edited 2 months ago)

Depends on the trade. If they sell before a stock collapses, that's true. They better do it before all the other insiders do, though - and you better be first too. Like, microseconds quick, if your strategy is just to copy them 1:1. If they're doing something multi-step it becomes a game where they have to be careful to preserve their information advantage, or it becomes worthless.