What is Spoofing in Financial Markets?

Binance Academy · 2023-06-01T09:29:09.000Z

TL;DR Spoofing is a form of market manipulation in which a trader enters false buy or sell orders, with no intention that they will actually be executed by the market. Generally, spoofing is done using algorithms and bots in an attempt to manipulate the market and asset prices, creating a false sense of supply or demand. Spoofing is illegal in most major markets, including the US and UK markets. Introduction Many talk about how big traders and whales manipulate the markets. While many of these theories can be easily disproved, there are some well-known methods of market manipulation that require large amounts of holdings/stakes. One of them is the technique called spoofing.