Spoofing

Spoofing is a market manipulation technique that aims to falsify the true state of the market. It usually involves a trader placing a fake buy or sell order that will never be executed. Spoofing is used to manipulate the market and manipulate the prices of a given asset, using various types of algorithms and bots. Of course, this is an illegal practice.
The process is quite simple. As mentioned, a trader uses bots or algorithms to place a fake buy or sell order. When the order is about to be executed, the bot or algorithm cancels it. The aim of this technique is to create false buying or selling pressure, creating the illusion of greater volume, consensus, and market activity. Additionally, it affects the market direction or price set.