easy · Market Microstructure Microstructure Fundamentals
A manipulator wants to buy 10,000 shares of XYZ cheaply. They place a large sell order for 50,000 shares at $50.01 to create the appearance of selling pressure, causing the bid to drop from $50.00 to $49.95, at which point they execute their hidden buy orders.
This strategy is best classified as:
- Front-running
- Pump-and-dump
- Spoofing
- Wash trading
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