Registered: Dec 2010
05-06-12 06:18 PM
If I am trading an instrument , say silver for example, ( a relatively thin market) and take out a few levels of DOM with my market order and move the market a few ticks, is that manipulation? If I'm a big player , my actions are going to move it more than a couple stupid ticks, especially if I really need to get out . Happens all the time.
In fact gold and silver are some of the most manipulated instruments out there, see (JPM & Silver) .
It is my belief that manipulation can only be temporary and must resolve through natural market forces eventually. When Silver started cracking above 20 dollars JPM's big shorts were getting toasted.
Big players know where retail put their stops , they need that liquidity to get filled so it is in their best interest to get to that liquidity.
The market exists to fill orders, just as cub foods supermarket is trying to fill the most orders between seller and buyer . The more volume they do the more profit.