>>3765555 pb market manipulation

Ok this is complete bullshit. This guy is just some trader who was using a mildly dirty tactic. It's basically a bluff. When you want to sell x units of gold, you can squeeze out a few extra ticks, the smallest denomination of price change, by offering to sell at 2 ticks above the current price, then flashing an order of 50x on the buy side and immediately canceling it. The "market manipulation" is momentary. If it doesn't work instantly, the spoofer has to cancel it because leaving it there for more than a few seconds is dangerous as fuck for himself.

It's saying to the market, "uh oh guys, look at this big order, better buy back your shorts now!" And it's designed to game hf algos because who the fuck watches the quantities in real time and reacts fast enough for it to matter. It's a childish strategy that's nothing more than algo traders fucking with each other and it's modeled after some pit trader from 2 decades ago nicknamed "the flipper".

If this trader was actually doing this aggressively, he automated it and sent the huge order followed by the cancellation 2 milliseconds apart. And if he did it too much, he'd get his fees raised by the exchange for wasting bandwidth.

To compare it to poker, it's strategically identical to holding a flush draw and wanting a free card but the guy before you is counting out a bet. So you try to dissuade him by noisily stacking chips like you're going to raise him. Actually it's not identical because the trader is actually bearing some risk that someone else simultaneously sells huge, fills his order, and costs him 1500x what he was hoping to gain. This is fucking retarded.

Telling young traders to do this is like telling them to see if their hand is bigger than their face. I bet the trader did it, fucked it up, got instafired, then cried to the authorities and will end up being the only one charged. What the fuck.