In some OTM option contracts, i have observed that when buy or sell is put by me, the very same instant the operator lowers/increases the price. I know that algo is legal but i wanted to enquire whether algo software can change price as soon as another buy/sell order is entered. I know that algo automates trade but this seems manipulation, i have tried wide price ranges for some of the contracts and still it happens. Asks/bids are not there at my price…i checked the market depth many times…but as soon as order is entered the operator puts in a order and its instantaneous…not even a second goes by…Is this done through algo software? if anyone knows about this please answer…
Yes it is done by Algo softwares called as bots in technical language.Bots only operate on both sides of the trade.