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> This crash didn’t just happen — it appears to have been provoked by a pile of fake sell walls, such as a large spoof order at $12,000 that disappeared as soon
by justboxing 9y ago
> This crash didn’t just happen — it appears to have been provoked by a pile of fake sell walls, such as a large spoof order at $12,000 that disappeared as soon as the price approached it, and another at $11,000. If this isn’t our friend “Spoofy”, it s a close relative.
> (This sort of glaring manipulation is ridiculously illegal in real securities trading — but welcome to Bitcoin.)
I really don't understand what these "walls" are, and how they can be spoofed. Do the same things also apply to traditional trading on Wall St. or is this unique to crypto currencies?
Anyone?
- bjterry 9y agoAt any given moment there will be a ton of offers people have made to buy or sell at a given price out in the market (whether it's Coinbase, NYSE or whatever). See [0] for an example of how this "order book" is visualized. In the middle is where the actual transactions are happening. A fake sell wall is a giant offer to purchase at a price that is pretty far from the current market price. On that chart it would be visible as a large vertical uptick. As the price goes down and approaches the huge buy order, the trader cancels it and the wall disappears. On a traditional exchange this is technically possible, but it's illegal to intentionally manipulate the market by placing orders. People often complain that high-frequency traders put in these orders and cancel them immediately without having the intention to actually transact. 0: https://www.bitstamp.net/market/order_book/ https://www.bitstamp.net/market/order_book/
- justboxing 9y agoWow. Thanks for the explanation.
- deleted 9y ago[deleted]