Market Making Strategies

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Market Making Strategies Anonymous Sat Sep 19 21:52:41 2020 No.22649078 [Reply] [Original]

On the sell side of LINKUSD Coinbase Pro order book there is usually an order for 20-40k LINKthat sits a few cents above mid market price and routinely gets cancelled and placed at a higher (or lower depending on price trend) price to maintain the separation from mid market price. Why place and remove huge orders like this? Is it to bait traders into placing orders at or around the same price level as a liquidity lure? Can anyone shed some light on basic market making strategies like this, or explain at a high level? Or is all this stuff opaque super secret quant algo shit.

>>	Anonymous Sat Sep 19 21:54:43 2020 No.22649117 It's called spoofing and it's illegal in traditional markets. It's used to manipulate price by fucking with HFT bots and trading algos

>>	Anonymous Sat Sep 19 22:27:33 2020 No.22649705 >>22649117 i see, thanks

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