spoofing

Definition

Stock market manipulation in which a trader with a position in a stock places an anonymous buy order for a large number of shares through an ECN and then cancels it seconds later. The price of the stock will immediately jump, giving the impression of high demand, which draws others into buying the stock, allowing the manipulator to sell at a higher price. Some market analysts believe this is one cause of increased volatility in the markets.

Use spoofing in a sentence

You may find out that someone is spoofing and you should tell others so that everyone will know to look out.

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Jacob thought using the technique spoofing would help out greatly in his favor with the stock, he was sadly mistaken.

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The spoofing that had occurred was causing problems as it was occurring repeatedly during this week so we investigated the problem thoroughly.

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