Spoofing

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Definition: Spoofing is a technique for manipulating prices on securities markets by entering and withdrawing orders that the trader never intended to execute. Spoofing has become a problem on the London Stock Exchange that the U.K. Financial Services Authority is looking to curb. One variety of spoofing is called layering.

Examples: Spoofing is the entry and removal of orders on a securities exchange with the sole intent of manipulating prices.
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