The misuse of automated trading algorithms to control financial markets including spoofing or layering is known as algorithmic trading fraud.Both spoofing and layering are strategies to manipulate a market. According to experts, manipulative trading practices like spoofing and layering involve placing orders without actually intending to execute them in order to influence price or execution by giving the false impression of supply, demand, or market depth.Spoofing uses fake orders that are meant to be canceled before they are carried out.Layering often uses several orders at various price points.Fraud involving algorithmic trading has a substantial impact on Investors, traders. Traders may suffer financial losses if they depend on false indications.
