<h2>What is Leakage?</h2>
<p>In the context of trading platforms, <strong>leakage</strong> refers to the unintentional disclosure of sensitive information, such as pending orders or open positions, from a trader's account to unauthorized parties. This can occur due to security vulnerabilities in the platform's software or network infrastructure.</p>

<h2>How It Works</h2>
<p>Leakage can happen in various ways, including:</p>
<ul>
  <li>Malware or viruses infecting a trader's computer and stealing data.</li>
  <li>Man-in-the-middle (MitM) attacks intercepting communication between the trader's device and the trading server.</li>
  <li>Weak or compromised passwords allowing unauthorized access to a trader's account.</li>
  <li>Outdated or unpatched software on the trading platform, leaving it vulnerable to exploits.</li>
</ul>
<p>Once sensitive information is leaked, it can be used by malicious actors to manipulate markets, engage in insider trading, or perform other fraudulent activities.</p>

<h2>Why It Matters for Traders</h2>
<p>Leakage poses significant risks to traders, including:</p>
<ul>
  <li><strong>Financial loss</strong>: Leaked information can be used to manipulate market prices, leading to losses for affected traders.</li>
  <li><strong>Reputation damage</strong>: If a trader's account is compromised, it can harm their reputation and lead to loss of future trading opportunities.</li>
  <li><strong>Regulatory compliance issues</strong>: In some jurisdictions, traders are required to maintain the confidentiality of their trading information. A leak could result in regulatory penalties.</li>
</ul>
<p>To mitigate these risks, traders should prioritize the security of their trading accounts and choose platforms with robust security measures in place.</p>

<h2>Example</h2>
<p>In 2019, a high-profile case of leakage occurred when a hacker gained unauthorized access to over 100,000 accounts on a popular trading platform. The hacker used the leaked information to manipulate markets and make unauthorized trades, resulting in significant financial losses for affected traders.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>Leakage refers to the unintentional disclosure of sensitive trading information.</li>
  <li>Leakage can occur due to security vulnerabilities in trading platforms or network infrastructure.</li>
  <li>Leakage poses significant financial, reputational, and regulatory risks to traders.</li>
  <li>Traders should prioritize the security of their trading accounts and choose platforms with robust security measures.</li>
</ul>