November 2019
Beginner
394 pages
10h 31m
English
Quote stuffing is a manipulation tactic that was employed by high-frequency trading participants. Nowadays, most exchanges have many rules that make quote stuffing infeasible as a profitable trading strategy. Quote stuffing is the practice of using very fast trading algorithms and hardware to enter, modify, and cancel large amounts of orders in one or more trading instruments. Since each order action by a market participant causes the generation of public market data, it is possible for very fast participants to generate a massive amount of market data and massively slow down slower participants who can no longer react in time, thereby causing profits for high-frequency trading algorithms.
This is not as feasible in modern ...