easy · Market Microstructure mmf-core

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:

  1. Front-running
  2. Pump-and-dump
  3. Spoofing
  4. Wash trading

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