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Spoofing

Volume Profile Analysis glossary · Volume Profile Technicals

Definition

The illegal practice of placing large visible orders with no intent to execute, in order to mislead other participants about supply/demand. Generally invisible on Volume Profile (since it leaves no trades) but can be inferred from order book replay.

Spoofing in plain English

Spoofing is a scam where a trader puts up big fake orders to buy or sell that they never plan to actually complete, just to trick everyone else about how much real demand or supply there is. It's like posting a huge fake bid at an auction to scare other bidders, then yanking it away before the hammer falls. It's illegal, and because no real trade ever happens, it leaves no footprint on a Volume Profile (which only records actual trades) — you'd have to replay the live order book to spot it.

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