medium · Market Microstructure
How does 'Painting the Tape' differ from 'Wash Trading'?
- Painting the Tape involves hidden orders; Wash Trading involves lit orders
- Painting the Tape targets specific price levels; Wash Trading targets artificial volume
- Wash Trading requires multiple accounts; Painting the Tape requires only one
- Wash Trading is legal for market makers; Painting the Tape is always illegal
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