What Is Spoofing?
A term spoofing is a form of market manipulation where traders’ places FAKE orders which never intending them to get filled by the market, it’s been mostly done by Algorithms & Bots to manipulate the market by creating a false sense of Demand & Supply, in this method typically, traders who attempt to spoof the market use bots or algorithms to automatically place orders to buy or sell. When the orders get close to getting filled, the bots cancel the orders.
Spoofing happens in all the markets like Stocks, Commodities, Forex, Crypto ETC. The main idea behind spoofing is trying to create a false impression of buying or selling pressure. For example, a spoofer may set a large number of fake buy orders to create a false sense of demand at a price level. Then, as the market gets close to the level, they pull the orders, and the price continues to the downside.
Spoofing is illegal across many major markets, including the United States and the United Kingdom.
How to maximize profit with Trailing Stop Loss?
A trailing stop is a modification of a typical stop order that can be set at a defined percentage or dollar amount away from a security’s current market price. For a long position, an investor places a trailing stop loss below the current market price. For a short position, an investor places the trailing stop above the current market price.1
A trailing stop is designed to protect gains by enabling a trade to remain open and continue to profit as long as the price is moving in the investor’s favor. The order closes the trad
Now understand Trailing Stop loss with an example.
Assume you bought a coin at the price of 100 and put the trailing stop loss at 90 (10 points below the buying price).
If the price drops to 90 then your stop loss will be activated and the trade is closed with a 10% loss.
But if the price of the coin increase to 130 then the trailing stop loss automatically shifts to 120 (means 10 points below the current price). If the price drops to 120 then the trade is closed automatically (the 120 trailing stop loss will be activated), If the price continues to increase the trailing stop also increase with it and remains always 10 points below the current price.
I will be releasing more such articles over-time to help you learn to trade. Feel free to contact me in case you’d need any help.
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