Thanks for the insight everyone.
Can someone help me understand much more in details with an example how this strategy will help make profit?
Let's say, current market price of the coin = 10 USD
The person sets a Sell order for 50000 coins at price 12 USD
And a Buy order for 50000 coins at price 8 USD
2 questions:
1. What impact will it have on the market when these Buy and sell orders are opened? Do these big orders move the price even when they are not executed? I know its a basic question but I am new to trading.
2. How is the profit being made here?
It depends on the total marketcap value of that coin,if the number of coin is somewhere near to 1-2% of total supply then surely it will be effected on the price but on coins like XRP which got huge marketcap value at the moment won't have much effect on price.
If both trades gets completed then that use can make $4 per coin and totally 200K profits and exclude the trading fee which is still huge profit right?