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spoofing

spoofing

9.6
Placing and canceling large fake orders to trick traders and change prices
  • noun
  • /ˈspuːfɪŋ/
  • Specialized
translation icon : spoofing
  • Market analysts warn that spoofing can lead to significant price volatility, as investors may react to the false signals generated by cancelled orders.
  • spoofing practice

Examples

  • After realizing this fundamental design error, the idea of a "posture spoofing attack" was born, and research started with evaluating different attack vectors for their feasibility.

    Blog text (11)
  • One useful example from the IGE narrative concerns "spoofing," the practice of a representative of a state impersonating another state or its IP addresses and thereby feigning identity and sometimes its location.

    Academic text (2017)
  • The financial regulator is investigating several cases of spoofing where traders placed large orders only to cancel them quickly, creating a false sense of market demand.

  • In spoofing, a trader creates an illusion of activity by submitting orders that they have no intention of executing, misleading other market participants.

Antonyms

Honest and open way of acting without hiding anything

How Manipulative

fraud
577 4.0
spoofing
  • Specialized
9.6
manipulation
130 5.5

Surface Forms

spoofing singular
spoofings plural

Morphology

spoofing = spoof (opaque) = spoof + ing

Although the word is built from 'spoof' + '-ing', the specific market-manipulation sense is highly technical and not predictable from the ordinary meaning alone.

Etymology

In finance, spoofing also comes from the slang spoof, meaning to 'trick'; traders 'spoof' the market by placing fake orders to give a false picture of demand. So financial spoofing means putting in and quickly canceling orders to trick other traders.