medium · Market Microstructure
A trader observes a pattern where an anonymous participant places a sell order for 100,000 shares of a thin stock at 50.10, which they do not intend to fill. After other sellers lower their offers to 50.05, the participant buys 5,000 shares and then cancels the 100,000-share order. This is a classic example of:
- Wash Trading
- Front-Running
- Spoofing
- Layering
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