Fake bids in market depth?

Phoenix · 24 May 2006

I was watching csr today and interestingly when the price was going up there were two huge orders at our 200,000 shares; the price slowly climbed and then started to go down a bit. At this stage share parcels were instantly removed.
Is someone trying to move the share price? What is the point of this?

regatwests · 24 May 2006

market manipulation. You see a lot of it. Off market trades, selling to yourself
selling to associates, using free brokerage can be effective on small caps.

It won't stop till every bid/offer is accompanied by a bidders/sellers registration number which can't be duplicated and is identified real time.

noirua · 24 May 2006

Phoenix said:
I was watching csr today and interestingly when the price was going up there were two huge orders at our 200,000 shares; the price slowly climbed and then started to go down a bit. At this stage share parcels were instantly removed.
Is someone trying to move the share price? What is the point of this?

I noticed this, as I bought a few extra shares in CSR to add to my holding. They were tipped this morning in another place. ( They have a forum, so I won't name them. )

Sometimes I have noticed bids way below the the current bid - offer range, in other stocks, maybe someone is trying to break the nerve of holders and attract sellers/offers at lower prices.

charttv · 24 May 2006

The market depth in Australian stocks is a joke!

http://pollux.biz/charttv/index.php..._abolished_what_will_the&more=1&c=1&tb=1&pb=1

chemist · 24 May 2006

charttv said:
The market depth in Australian stocks is a joke!

http://pollux.biz/charttv/index.php..._abolished_what_will_the&more=1&c=1&tb=1&pb=1

Nice blog.

I believe that successful traders are so busy making copious amounts of money from their strategies that they wouldn't bother sharing their precious knowledge with the public for a pittance of what they can achieve from trading with it. If you were a successful trader on 5 million pounds a year would you just hand over all your valuable skills and know-how to a newbie off the street in a $3000 weekend seminar?

Cheers,
Chemist

mit · 24 May 2006

You see it a lot in pre-open. There will be large buys or sells that distort the indicative price and they get pulled at the last moment moving the indicative price the other direction catch those people who put in a high/low buy/sell.

MIT

kr1zh · 24 May 2006

is manipulating the market depth LEGAL?

dutchie · 24 May 2006

Not at the moment.

Anyone can place any bid at any price (and any number) and then withdraw it the next minute.

It would be very difficult to police (stop) this sort of manipulation.

dreilly · 24 May 2006

What does he mean in that blog when he refers to daytraders trading off the depth?

chromatic · 24 May 2006

I assume he means looking at buy and sell depth as an indicator of price direction for the day. e.g., larger buy volumes than sell at narrow spreads would suggest we're heading up. Obviously placing large orders close (enough) to the ask price with no intention of actually going through with the buy distorts the picture. Same story in reverse for sells.

Fake bids in market depth?

Phoenix

regatwests

noirua

charttv

chemist

mit

kr1zh

dutchie

dreilly

gday, wheres the cheese.

chromatic

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gday, wheres the cheese.

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