4 ms·
If I place a ton of buy orders just off the top of the book, without the intent to actually buy, other market makers and algos WILL react to the new weighted mi
by jawilson2 3y ago
If I place a ton of buy orders just off the top of the book, without the intent to actually buy, other market makers and algos WILL react to the new weighted midprice and raise their offers. This is basic market microstructure supply and demand; if I signal I want to buy A LOT of something, others will raise their prices. When the price gets high enough, I cancel the buy orders and sell at a higher price. This is illegal.