Marketminute | Leak Detection Guide

leak detection is a critical process in the financial industry, ensuring that trades are executed correctly and securely.

Real-time leak detection involves monitoring trading platforms for signs of manipulation or irregularities. This can include suspicious patterns, unusual market activity, or even direct communication with traders.

Types of Leaks

• Lack of liquidity: When the market is oversold, and there are insufficient trades to cover all positions, this can lead to a leak in liquidity.
• Momentum trading: Excessive buying or selling can create a surge in prices, leading to a leak if not managed properly.
• Algorithmic trading: Complex algorithms can sometimes backfire, causing unintended market movements that may be considered a leak.