Hacker News new | ask | show | jobs
by lrm242 4434 days ago
Using large non-bonafide orders to lean the book in the direction you want to trade is called 'Spoofing', not quote stuffing. It's been illegal for a long time.
1 comments

I agree that some people call it spoofing and that is a better name for it, but other people do call it quote stuffing.

It's one of my pet peeves that when it comes to this industry there is very little standardization of the language.

Misuse of language by opponents of automated trading is intentional. When presented with examples of beneficial computerized trading like automated market making, they throw their hands in the air and say, "oh no, when I say 'HFT' I only mean these bad kinds":

"The practice of spoofing, or sending in fake orders in order to gain information about what other investors, traders and other algorithms are doing, is the corner stone of most High Frequency Trading strategies (HFT)."

http://www.nanex.net/aqck2/4371.html