Order books are simple enough to understand and while the concept of spoofing might be a bit more difficult to wrap your head around, it doesn’t exactly involve rocket science either if the basics are explained to you in a logical manner.
From the (in)famous “Spoofy” of the cryptocurrency world to spoofing examples involving more established assets such as shares, the sky is the limit when it comes to let’s call them spoofing business models and from definition to legal issues, this video covers all bases.
But is this practice legal?
In pretty much all Western jurisdictions… no. However, enforcing laws is a totally different ball game. When it comes to let’s say spoofing practices associated with US shares, enforcing laws is simple enough but what about cryptocurrencies, where you have companies registered in various more or less shady jurisdictions and which oftentimes don’t even have an easily identifiable offline presence?
Again, it depends.
All in all though, let’s just say that as explained throughout this video, spoofing is a practice that is most definitely frowned upon and in many cases rather severely punished, but temptations abound and as such… some market participants such as crypto’s “Spoofy” do it anyway 🙂