easy · Order Flow Analysis market-mechanics-execution

A surveillance alert identifies a high cancel-to-fill ratio without other context.

What is the legally careful beginner conclusion for surveillance example 12?

  1. Every large, multi-level, or canceled order is automatically unlawful and predictive without examining pre-entry intent, fills, messages, or surrounding conduct
  2. The ratio automatically establishes a final legal violation
  3. The facts do not by themselves establish spoofing; assess whether there was pre-entry intent to cancel before execution
  4. Cancellation frequency makes the trader’s intent irrelevant

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