Insider trading refers to buying or selling of securities by someone with access to unpublished price-sensitive information (UPSI). SEBI strictly prohibits this and imposes heavy penalties. Ethical trading involves adhering to laws, fair play, and transparency in transactions. Analysts, company insiders, and employees must follow strict disclosure norms. Traders must avoid acting on tips or private company data not available in the public domain. Corporates must maintain insider trading policies and trading windows. Ethical trading also involves avoiding pump-and-dump schemes, spoofing, or market manipulation. For retail traders, this means verifying news sources, not acting on WhatsApp groups or unverified tips, and avoiding conflicts of interest. SEBI has a surveillance system to track unusual trades linked to UPSI. Ethical behavior builds a trustworthy market ecosystem. Even for algo traders, using clean data and documented logic ensures fairness. Following ethical practices not only keeps you compliant but also helps build a sustainable trading career without legal troubles.