Sorry this question is regarding the understanding of how big bettors can push the odds up or down
.
Basically if there is more selling pressure than buying pressure the odd go down
Does it work in this way?
So for example if I go into an exange and I place a back order of the size of 20k will the odd pump up?
How does it work?
I just want to know the mechanism, I just want to know how does it work, because it is a concept that I don't nderstand...
If a guy with 20k is going to push the odds artificially up, what should he do?
He should put a big back order at the market price, or just a little bit lower, and then delete it?
What happens if there is no liquidity to eat that order?
Let's suppose a guy with a lot of money wants to push the odds up of 12 ticks, what should he do?
He will put a big back order and then? He will wait for what? For his order to get filled? For the order to be deleted?
How to push odds up or down
If somebody places a £20k back order that's more likely to push the price down - it's the big lay orders that will push them up.
Spoofing, just like trading, is a complex game and there is no single approach or method of doing it. Some use one large bet, others will make it less obvious and have several smaller bets. The aim is to cancel the spoof bets when their opposing bet is taken.
If there's not enough liquidity in the market to eat the money it will just stay there and not get eaten.
There is a limit to how far a spoofer can move the market, they can't just move the market as many ticks as they feel like because eventually the bet will get taken.
Spoofing, just like trading, is a complex game and there is no single approach or method of doing it. Some use one large bet, others will make it less obvious and have several smaller bets. The aim is to cancel the spoof bets when their opposing bet is taken.
If there's not enough liquidity in the market to eat the money it will just stay there and not get eaten.
There is a limit to how far a spoofer can move the market, they can't just move the market as many ticks as they feel like because eventually the bet will get taken.