A trader explains how spoofing works: fake sell orders create the illusion of selling pressure, while hidden iceberg buy orders quietly absorb it. When the spoof orders vanish, the domino effect makes the price move predictably.
If that happens, like I'm going to sell my house and put all of the money into that trade if it goes more. Because what you do when you want to trade a spoofing is you're also looking for a so called absorption. So in the sell limit, there's a bunch of orders, but here there's not a lot of orders actually executed. No one is really buying into them. And if someone tries to buy, they disappear. So they are fake order. This is spoof orders or layered orders. All these sell orders are trying to make the market believe that there's someone big saying we're going down today, guys. And what's happening really in the lower part is in the buy limit side, they're putting a so called iceberg order. And an iceberg order is the opposite of a spoofing. So they're showing just maybe 10 contracts, but they have ready 1,000 contracts. Every time they get executed, they put a little bit. It's a domino effect. So it's a domino effect. And they get filled by not showing that they have an order, but absorbing all the selling pressure that they are artificially creating with the spoof orders up. I'm not sure why I'm giving it away like this, but.
