Is Spoofing alive and well? | Traders Hideout - futures trading strategies, market news, trading charts and platforms

Traders Hideout

Discuss day trading practices and futures trading strategies on this forum for all markets. This forum is also for discussing and reviews for brokers, data feeds, and commercial or third party add-ons


Is Spoofing alive and well?

  #9 (permalink)

North Carolina
Trading Experience: Beginner
Platform: NinjaTrader, Tradestation
Favorite Futures: es
Posts: 644 since Nov 2011

They might be trading try to spread combinations of futures contract. I'm not sure if the regulators look at spoofs off market the same as at the market because you can't execute against those trades, and that might be how they get away with it. But, it just makes sense that if you're spoofing to impact the trade you're more likely to do it during a low volume time or else your spoofs would be ignored so to speak.

Sometimes I've felt the heavy constant spoofers are probably the largest liquidity providers. So, that might be another reason that they get away with it because they are providing liquidity on both sides of the market as opposed to just trying to execute "toxic flow".

It's a good question though. All anyone can do is speculate unless they are the ones doing it. Sometimes the HFT's will execute in front of orderbook imbalances. It can make it much harder for discretionary traders to hit their targets. That's another sort of activity though.

You could always try to call up Goldman or the exchange and ask them. Are you the guy who just flashed the big fake size ? Inquiring minds want to know.

Reply With Quote