hard · Market Microstructure hft

A trader observes the following order book for 'Zeta': Bid: 100 @ 10.00, 200 @9.95 Ask: 100 @ 10.05, 300 @10.10 The trader simultaneously places a sell order for 10,000 shares at $10.06 and then immediately cancels it, repeating this 50 times in one second. What is this behavior?

  1. Index Arbitrage
  2. Front-running
  3. Spoofing
  4. Layering

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