The market has AI machine learning algos that front run your order and sell (or buy) to you at a higher (or lower) price. The use speed and pattern recognition to get in front of what you want to do & collect a spread. If you try a trick these algos/machines you will be charged
With a crime called #Spoofing. The exchanges are pro algos and help pass the anti spoofing rules/law. Why? Because robots create more brokerage fees. Here's an example you go to buy a share and place a bid, the algos recognize your new "real order" and lift the offer
They then have removed liquidity and you buy at the higher price. So instead of 1 transaction we have 2 that the exchanges get to charge fees. This works with sales as well. This form of Disruptive and manipulative trading is legal. Not only is it legal they outlawed the only
Defense against these algos/machines which is faking what you really intend to do. Pretty clever right. Once again another government regulation to protect biz, NOT YOU!!! It actually net costs investors billions each year but since it's so well hidden and opaque no one cares.
Imagine going to the grocery store and as soon as you reached for an apple someone ran bought all the apples and offered to sell to you higher. Now imagine if you had this happen a few times and faked buying apples and instead bought pears to trick the profiteer. You'd be jailed
