Hello Gurus of trading 
I am curious about the following:
Sometimes, I notice that a trade is placed in the orderbook and then the next second is canceled, then placed again etc and the process repeats.
Obviously this is a bot, but what is the point of this? Is this a trading strategy?
I am curious about the following:
Sometimes, I notice that a trade is placed in the orderbook and then the next second is canceled, then placed again etc and the process repeats.
Obviously this is a bot, but what is the point of this? Is this a trading strategy?
Yes this is a trading strategy by bots that try to influence the market price and trade against it. I am not an expert on this, but I remember the story of the flash crash in 2010 where a single trader from the suburbs of London managed to destroy trading in 30 minutes. Very interesting story I can recommend watching a documentary about it. He basically created millions of buy and sell orders through his bot but cancelled them before they get executed. This is very risky if you don't have the best equipment and technology. Also the exchange might block you if they find your actions harmful.