When you encounter a fairly new platform on the trading market, the question imposes itself – is Securedvc a fraud? How can I be sure right away that I can trust this new broker? The truth is, you can never know for sure, especially with new and up and coming platforms popping up each day. That’s why we wrote this Securedvc review, in hopes to dig deep and search for a Securedvc complaint, so you don’t have to.
While we first visited the page, we came upon a top of the line webpage, designed simply but still in a very attractive way. The dark blue color of the background combines yellow letters to emphasize wealth and good fortune. These are two of the most assuring features every trader seeks in a platform. Still, is there a Securedvc bad review somewhere out there? Keep reading to find out!
What is decimal trading? How does it relate to Securedvc? Well, the principles of decimal trading are a crucial part of the core of each successful platform, including this one. It is the basic system of trading, which presents the prices of securities in a decimal format. This system was introduced in 2001 by the US Security and Exchange Commission. Before this, the system that was effective was fractional quotes, which was quite difficult to comprehend and calculate each day. This system was based on the increments of 1/16 of a dollar.
With the decimal system, however, it is much easier to understand the prices and relations of the assets on the market. No matter if you are an investor, trader, broker or an analyst. One of the most significant differences between the two systems is the spread. Namely, while the fraction system created a spread of 1/16 of a $1, the decimal system takes on a spread of $0.01 for stocks that are worth over $1, and $0.0001 for the ones under $1.
What is a Spread?
The term of a spread represents the difference between the highest bid and the lowest ask price. As we’ve mentioned above, the spreads became tighter after the introduction of the decimal system of trading. What are the advantages of tighter spreads? Well for starters, this type of spread is typically more convenient for traders who want to briefly and efficiently get in and out of a trade. For them, there is a special term called “capturing the spread”. This way, they attempt to routinely bid and make offers in hopes of making small but regular profits.
Securedvc makes its priority to create and improve existing systems of trading so that you can experience the most out of the market. Things are moving so fast and new technologies are popping up on each corner. That’s why it is important to stay in touch with everything the market has to offer.
Speaking of imposing new principles and updating systems, there is one other important one to note. In 2005, the Securities and Exchange Commission created Rule 612, otherwise known as the Sub-Penny rule. This principle requires that the minimum price increments for stocks over $1 be $0.01, while stocks under $1 are quoted in increments of $0.0001.
Following this rule, the stocks that have a lot of daily volumes will most likely have lower spreads. In addition, volatile assets tend to have bigger spreads. The spread is quite difficult to predict, as it is with any other feature of the market. It consists of volume, volatility, price of an asset, and so many other factors that we will talk about in the following passages.
Insider Trading Sanctions Act of 1984
As more advanced trading strategies came to be, so was created a new need to create new and innovative ways to try and “tame” the market. On the road to doing that, many traders and brokers have gone rogue, which brought some type of chaos and inefficiency. The most crucial and impending problem was insider trading. This is a highly illegal act that was popular during the 70s and the 80s. It represents an act of trading stocks of the public companies by having insider information about it.
How does that work, exactly? Well, trading should be based on information, of course. From the latest political and economic news to educational tools, your trading life should be much easier. However, the thing is – when you trade inside information, the information that is not public yet, you are basically committing a felony.
To prevent this, Congress made a piece of federal legislation back in 1984 – the Insider Trading Sanctions Act. This is a useful tool for the Security and Exchange Commission to prevent misuse of information to gain personal advantage and profits. Thanks to this act, the SEC can seek a civil penalty from anyone found guilty of breaching the Act in order to acquire profits.
Back in the 80s, this Act was a top priority for Congress. Before introducing it, the financial penalties were the only way to execute punishment for the use of insider information. In addition, it was quite difficult to detect that any misuse has happened in the first place. That’s why the US President Ronald Regan signed the Insider Trading Sanctions Act on August 10, 1984. This way, the regulatory body can seek civil penalties and other legal remedies in case of a violation by imposing insider trading principles.
For the market, this Act was important in creating the so-called “Risk-reward system”. By applying it, the size of the profits became parallel with the amount of time, effort and capital which the traders were applying. And again, all was well in the world of trading.
Seeking monetary penalties is quite an effective way to prevent a potential violation. Imagine this – you are engaging in the market, applying your skills and knowledge, hoping for the best. You wouldn’t want others to steal your thunder and make those efforts useless. This is where the Insider Trading Sanctions Act comes to play. By making the market safe and inclusive for everyone, and no foul play is allowed!
This is the only remaining part of the Act that is somewhat uncertain. Namely, for the act to be named a felony regarding this rule, there need to be several fulfilled requirements. The first one is a liability. Namely, for someone to become a criminal felon, they need to be an insider. This was quite difficult to determine. Especially when the main priority for brokers and companies is to ensure the utmost safety and strict regulations for this area.
Regardless of the purpose, insider trading is highly forbidden. Whether it’s for a personal gain or any other reason – insider trading shifts the rules of the game to your favor, making it unfair and rigged. This then ruins the appeal of the entire process of market trading, which stood the test of time by being exciting and unpredictable.
The Infamous Martha Stewart Trial
One of the best-known convicted cases of insider trading was the case of Martha Stewart, a celebrity chef, and TV host. Namely, back in 2001, the stocks of the company ImClone have dropped significantly. This was set to happen after one of the company’s drugs failed to get the approval of the FDA (Food and Drug Administration). Before the official announcement, SEC has come to the shocking information. Namely, several people working for the company have tipped off their family members and friends about the issue, urging them to get rid of the stocks and save their funds.
One of the people that got a hold of the insider information by their broker was Martha Stewart, who then sold her stocks worth over $230.000 before the official announcement. This subsequently brought her a 5-month jail sentence, 5 months of house arrest, as well as two years probation. Stewart is claiming to this day that she was forced to do so by her broker. Unfortunately, this claim was not enough to keep her out of fulfilling her sentence.
All things considered, you have to take a look at the prior history of a certain topic that interests you. This way, you can uncover a lot of damaging, as well as helpful details. This is what this Securedvc review is all about. We aim at bringing you honest and truthful information so you can make a smart trading decision.
This is what Securedvc is all about – providing accurate information and collaborating with law enforcement in order to prevent any fraudulent or criminal activities. The Insider Trading Sanction Act is just one of the many policies and methods. Securedvc uses them in its fight against abuse of information and other types of illegal activities on the market. Still, the uncertainties are a common part of trading. Securedvc aims to protect you, by all means, necessary, in the parts of the market which that is possible.