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Quantitative Finance · Glossary

What is Rogue trading, fictitious trade?

Also known as: rogue trading · fictitious trade

Definition 28.4 Rates, Credit, XVA and Risk · Chapter 28 — Operational Risk and Rogue Trading

Rogue trading is trading beyond a trader’s authority, in size or in kind, concealed from the firm. A fictitious trade is a booking with no economic reality, entered to offset or disguise a real position in the firm’s records.

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