Now i know where all these wierd level 2 data come from: Spoof proof - JPMorgan Chase faces a fine of $920m for market manipulation _ Finance & economics _ The Economist

[paul ang 9]

The traders are alleged to have used “spoofing”, a ruse where a marketmaker
seeking to buy or sell an asset, like gold or a bond, places a series of phoney
orders on the opposite side of the market in order to confuse other market
participants and move the price in his favour.

Spoof proof - JPMorgan Chase faces a fine of $920m for market manipulation _ Finance & economics _ The Economist.pdf

[Radek 7]

Hi there!

 

Well, for me this is part of trading :). There are crooks for sure in this business, especially guys with big bucks.

You have to watch out for that. This is why Andrew is everyday saying... "These L2 orders are too far and have no intention to fill". Andrew is specifically mentioning that in his book as well.

Even thou this is illegal, this is done in the markets really often. I can see it everyday.

I don't think that there is a way to prevent it from happening, so its better to acknowledge it and live with it.

Overtime, you will be able to spot such manipulations.

Cheers,

Radek