SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Final Frontier - Online Remote Trading
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Eric P who wrote (8608)1/18/2001 11:47:50 AM
From: TFF  Read Replies (1) of 12617
 
Pretty common tactic really. Just another example of SEC playing up to the media I susect. Here's an interesting piece on "spoofing".

3) Spoof: Actually, this may be your best bet of all. It's as old as the first market itself and in many ways can still be employed - indeed perhaps best of all - in the good old electronic markets. Even the most opaque of order entry systems tend to give bid and offer data a few ticks apart. If you really want to do one thing, you can always enter something juicy in one side of the order book and then hold back your orders on the side you want to do the business. You do of course run the risk of being taken out...but then again if spoof was a sure fire winner, then everybody would be doing it. Moreover, if you have a smart enough ISV (whoever said "smart ISV" was oxymoronic, go to the back of the class, please), they can provide you with an order feeder system whereby your order which you really want to execute goes in in clips onto the correct side of the market as soon as you see the market coming your way. True, you might find FIFO working against you here but look, if you want million dollars solutions, well send me a cheque for 500,000 up front and I'm sure I can get you a million dollar solution, okay? Anyway, another thing about the order book showing, say 5 ticks around the market is that you can of course show your big "spoof" order away from the actual market itself and hope this has the trick to drive prices your way.

appliederivatives.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News