Why would an algo try to pick off the "fake" large order? Then they are short size in your example. Then what?
because they have long and short inventory unlike you and I who are short or long and they are always Liquidity seeking
dont forget they are also aggressive and if they do get a sizeable position in the short term they can force the mkt lower no one said just because they chase my limits that if it got filled they wouldnt push it lower immediately all they need is a tick. they arent trading this stuff in positions and longs lengths of time. its hft.
unlimited margin and if you push it down far other sellers jump in after n ur buying back. they are always selling when ur buying etc. so its always the opposite of what you think
Very old Steve Martin routine: You can be a millionaire...and never pay taxes! First, get a million dollars. Now, you say, "Steve what do I say to the tax man when he comes to my door and says, 'You have never paid taxes'? Two simple words. Two simple words in the English language. "I forgot!" Yea joke doesn't stand the test of times. But in the same vein you are saying .... you can spoof S&P futures market easy. First get a very large trading account ............... duh. Then place large size bids/offers and pull em, reverse them, then remove them altogether. Really. Never would have thought that. Wow thanks for clarifying that.
Its not a trading tutorial. More of a story. However, it does define spoofing in detail and how Nav did that.
Spoofing, flashing and pulling large orders happens in every market all the time, even the thick ones. Just watch the ladders and you'll see it yourself.