read sebis spoofing case… broker spoofed 173 stocks. just curious, how do exchange n zerodha catch or stop such spoofing? or its only caught after?
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What is there to catch except the users’ lack of awareness of what they are trading!
Maybe prominently display / highlight the market depth of Asks and Bids?
If one is swayed by just the Ask/Bid volume,
without knowing/looking at the respective prices, well… sigh 
@kumar_learner here’s how one would go about deciding that for oneself…
First, we look at the volume to understand how much money exchanged hands at these elevated price points.
Next, we look for any recent news
about the company / its sector,
or about any regulations impacting the company / its sector.
Finally, we read
the recent financial filings by the company,
and the recent updates to the regulations affecting it.
Ultimately, we are overwhelmed.
We realize that all this is beyond one’s means to comprehend.
…and then finally we ignore the scrip,
as there are likely less risky alternative opportunities
to make a reliable, consistent, buck
instead of speculating in Micro Caps. 
PS: BTW, the “spoofing” mentioned at the beginning of this topic-thread, is on Ask/Bid prices, not actual trades.
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most of them r… true… but stil feels like exchng/brokers shud hv some triggers fr weird order patterns?
How does it really work. This spoofing. Tried to google. Got this example
Example of Spoofing
A hypothetical spoofing scenario isn’t too difficult to dream up. For instance, let’s say Mike, a trader, has 100,000 shares of Firm Y stock, and he wants to sell it. Mike uses an algorithm to place hundreds of “buy” orders for Firm Y shares — an algorithm that will also cancel those orders before they’re executed, so that no money is actually spent.
The influx of orders is read by the market as an increase in demand for Firm Y stock, and the price starts to increase. Mike then sells his 100,000 shares at an inflated price — an artificially inflated price, since Mike effectively manipulated the market to increase his profits.
To expand on this
Mike has 100,000 shares at say 200
Market price of the share is 210
Now mike wants to spoof.
He places multiple buy orders of what? Above 210 or below 210.
If he places above 210 txn will get executed. If he places below 210 then txn remain pending
Is it that new buyers will check the market orders and get tempted to buy above 210 based on the market depth? This way stock price will increase?
Do any investor buy a stock based on market depth? If so he deserves to lose out right? Why would anyone buy based on market depth.
If this is the case on days there are no sellers on MAFANG, mirae asset s&p 500 etf. All the buy orders are spoofed. Motilal nasdaq most of the days have sellers. The above sre etf.
I keep monitoring the above three and moment there is a seller, i buy.
Am i being spoofed. I buy because i want the above three etf units based on the constituents. am i spoofed. Dont know.
Another strange feature I noticed in these Mirae Asset S&P 500 top 50 ETF is that, when I check market depth, there are buyers and sellers in NSE but on BSE there are only buyers and no sellers.
Why cant the buyers on BSE, just switch and buy from NSE. I found this strange. I check the market depth only fro these ETFs as on few days there are no sellers. So need to keep checking on this and found this strange case where buyers are there on BSE but no sellers. Maybe these are fake buy orders. If anyone checks the market depth, they will know that there are sellers on NSE and just switch and buy the quantity. After reading this article, these orders could be fake or algo/machine or whatever.
If it was a genuine buyer, all these buyers need to check the market depth and switch to NSE. The price is more or less the same in NSE where there are sellers. Hope there is no fraud in this.
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- Anyone is free to place orders at any price.
- Markets react to orders placed.
- Have enough money at stake (relative to the liquid volume of the security),
and one can manipulate the price of the security by purchasing/selling it,
or even attempting to purchase/sell it.
So far, Just this, IIUC is not fraudulent.
(assuming there aren’t other reasons why one in not allowed to do so.
eg. One is not the owner/promoter spending the company’s assets
to purchase company stock without proper disclosure.)
The fraud is placing an order without any intent to fulfill it.
With the express intention of benefiting from a reaction to that unexecuted order in other ways - i.e. the fraudulent market manipulation.
…and that intent is hard to prove, especially upfront before the act of fraud has taken place.
Also, even after the fact, it is hard to prove the intent,
but these particular set of fraudsters got greed/lazy and ended-up doing it blatantly
and hence are being prosecuted (i suppose).
Yup.
But, the “Average” folks don’t even know this apparently,
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