medium · Market Microstructure hft
A trader wanting to buy 10,000 shares cheaply places a 50,000-share sell order at $50.01, causing other participants to lower their bids to $49.95. The trader then executes a hidden buy order at $49.96 and cancels the sell order. This is a classic example of:
- Layering
- Painting the Tape
- Quote Stuffing
- Spoofing
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