Layering (finance)
Encyclopedia
Layering is a strategy in high-frequency trading
where a brokerage firm
makes and then cancels orders that they never intended to carry out. It is considered a form of stock market manipulation.
High-frequency trading
High-frequency trading is the use of sophisticated technological tools to trade securities like stocks or options, and is typically characterized by several distinguishing features:...
where a brokerage firm
Brokerage firm
A brokerage firm, or simply brokerage or broker in context, is a financial institution that facilitates the buying and selling of financial derivatives between a buyer and a seller...
makes and then cancels orders that they never intended to carry out. It is considered a form of stock market manipulation.