X-Trader.net - El Foro de los Traders

11.4 MANIPULATION OF STOP ORDERS ( pag.256 )

Traders who use stop orders must be very careful about exposing their orders. Shrewd traders who know where stop loss orders are set can employ a manipulative trading strategy called gunning the market to profit from this information.
Market manipulators gun the market when they push prices up or down to activate stop orders. The stop orders then accelerate those price changes. The manipulators close their positions at a profit by trading with the stop orders.
Traders who use stop strategies can protect themselves from gunning strategies by hiding their orders and by trading only in very liquid markets that are expensive to manipulate. Otherwise, traders must monitor the markets to determine whether the price changes that hurt their positions are due to fundamental changes in value or to traders attempting to exploit stop strategies.
In some countries, including the United States, price manipulation of this type is illegal. The law, however, is virtually impossible to enforce because it is difficult to prove that a trader was gunning the market. When confronted, manipulators defend themselves by saying, 'I bought because I felt that price was too low, and I sold when the market realized my expectations." If asked why they did not buy again when the market subsequently
fell, they say, "Since I did not expect the market to fall, the fall demonstrated to me that I really did not understand what was happening. I was therefore unwilling to trade again.» Without reliable evidence that documents the true purpose of their trading strategies, authorities cannot convict gunners of price manipulation.

florfondo escribió:Si me dais un poco de tiempo os lo puedo proporcionar.Estoy haciendo pruebas para poderlo enviar a quien le interese sin tener que escanearlo.
Un saludo . florfondo.

Judith escribió:.........
que terminen de pasar un buen día!
Judith