Dabba Trading Explained: How It Works, Risks, and What Traders Should Know
Financial markets offer different ways for people to participate and try to earn returns from price movements. While most traders use regulated stock exchanges and authorized platforms, some people are attracted to unofficial trading methods because they appear faster or easier. One such method is known as dabba trading . Dabba trading is an unauthorized form of trading where transactions are handled outside the official stock exchange system. Instead of placing orders through regulated brokers, traders deal directly with operators who maintain their own records. Although it may look similar to normal trading, it works differently and comes with several risks that traders should understand. What Is Dabba Trading? Dabba trading refers to an illegal and unregulated trading practice where buy and sell orders are not executed through recognized stock exchanges. The word "dabba" means a box or container, referring to the idea of keeping unofficial records of trades instead of ...