Phantom Trading in Finance: A Fake Market Tactic
The financial markets operate on trust, openness, and fair competition. Yet, not all trading practices line-up with one of these values. One of the most suspect phenomena in modern trading is Phantom Trading. This manipulative strategy creates illusions in the market, influencing prices, emotion, and decision-making, often at the expense Trading platform of retail traders and market integrity. Defining Phantom Trading Phantom trading involves fake practices where market participants imitate trading activities to control awareness. It may involve placing orders that are never meant to be executed or performing trades with ulterior motives beyond genuine investment interests. Common forms of phantom trading include: Spoofing: Fake orders they fit on one side of the order book, planning to trick other traders about market demand or supply. Once the market behaves, these orders are canceled. Wash Trading: The same thing buys and sells an asset to blow up trading volume unnaturally, c...