ORDER SPOOFING VS. LAYERING .- HOW ARE THEY DONE?
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- Опубликовано: 21 окт 2024
- In this episode I discuss the differences between two very similar market manipulation scenarios: Order Spoofing and Layering. Both are illegal and punishable according to Market Abuse Regulation by European Securities and Markets Commission.
I have a feeling that pretty much every hedge fund does this on a daily basis... far more than the SEC is aware of. Plus it's so hard to prove... People change their minds all the time and cancel orders as the markets move.
I think this happens a lot with AMC, GME and other so-called 'meme' stocks.
They do, but there are systems in place to identify such trades, Those trades are then manually investigated by specialized teams.
Moreover systems are getting smarter and better,
How do I know? I design those system logic
Hello,
that is a great video and a really nice explanation of Spoofing & Layering.
I am currently researching on the current European market-manipulation regulation and this video helps a lot.
But still I got one question:
Cant the other market participants see that the spoofers "fake" order was/is a limit order"? Why should they buy a Stock that is at 100,00 only because there is a large limit order at 99,50 ? Shouldnt the price go down from 100,00 to 99,50 if that order was executed at all and cant market participants see that its just a cancelable limit order?
Thanks and greetings from Europe
M.
Thanks for this. 1. Only limit orders are visible in the Order Book. 2. They may buy this because of their own Interpretation (it is only an interpretation really) that a "big fish" such as institutional investors, asset managers got interested in this security will be buying in large chunks, nothing will happen if order book readers and algos just ignored this information. 3. So, if many investors at the same time interpret this new large order or ladder of orders as increased demand, they will start buying immediately. In that case price will go up. If investors will not interpret this information as such then the price may go down to get that order triggered but that will not happen because the perpetrator will cancel it. For this example, he is interested in selling and thus getting a better (higher) price. 4. All limit orders are cancellable.
@@gkconsultancy637 Hey, thanks for the detailed answer and thanks for the further going explenation! Really nice of you guys - greetings!
thanks for the video, I didn't understand the concept and now I do
Thank you 👍😊🙏
Sir, how to get this indicator?
Spoofing doesnt work.
this didn't age so well..bloomberg just reported the guy at JPM convicted for spoofing gold market for years.
@@idontgetscared nah. They’re just assuming this just because he has canceled orders. They’re just convicting people off the fact that they have canceled orders that’s it nothing else. If you make money in your account and then you also simultaneously have many canceled orders then you are going to jail just so the government can take your money. It’s just a load of baloney and another little scam that the government has to steal more money for themselves.
Why not?
My brother had an $10k account and tried spoof in a stock indices market and he acyually made the market go down he made$233m from spoofing
Plot twist i made up the story please dont call the governmemt on me