It's a strategy you can use when you think stock prices will fall. The difference between the selling price and buying price is your profit. One type of insider trading, which is illegal, is the use of privileged information for personal gain. The Market Surveillance Department of the TSE has sophisticated computer programs to monitor trading and help prevent insider trading. Options are contracts that give you the right to buy, in the case of a call option, or sell, in the case of a put option, a specified number of shares at a set price within a given time.
Program trading occurs when a number of large baskets of stocks hit the market at the same time.
The volume and value involved can contribute to market volatility. Program traders are offsetting the basket against a stock index or futures contract. A stockbroker is registered by the securities commission of the province in which he or she does business. If you buy a listed stock, you must deal through an intermediary such as a full-service broker or discount broker. The broker provides access to market research and is also responsible for complying with TSE trading rules ensuring trades are settled.