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I actually vaguely remember some friend relating a story about someone trying to pull a currency manipulation stunt against a bank. Basically they had some syst
by im3w1l 4y ago
I actually vaguely remember some friend relating a story about someone trying to pull a currency manipulation stunt against a bank. Basically they had some system where someone could approach the bank and ask for a quote on an FX pair. And then after that decide if they wanted to trade and if so how much and which side they wanted to take. So they sold this bank more and more of some currency right. And some junior at the bank was adjusting to this, the more they had of this currency the more they changed the price. Some senior learned about this was horrified and explained that they were being scammed, that the counterparty was gonna do a big transaction the opposite way after moving the price far enough. So he set the price right back to where it started. And that stopped the suspicious trades immediately.