Quote Stuffing
Market Microstructure glossary · Market Microstructure Fundamentals
Definition
The practice of submitting and rapidly canceling huge numbers of orders to overwhelm a venue's quote system, slow competitors, or create misleading signals. Generally considered manipulative.
Quote Stuffing in plain English
Quote stuffing is when a trader floods an exchange with a huge blizzard of buy/sell orders and cancels them almost instantly — not to actually trade, but to clog the system. Think of someone jamming a store's checkout line with fake customers so real shoppers (their competitors) get slowed down and confused about what's really for sale. Because it's designed to gum up the market and mislead others rather than trade honestly, regulators generally treat it as illegal manipulation.
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