It’s all about intent. If you place a bonafide order with the intent of it getting, but at a later time (1ms is fine) decide that is no longer a good price, you are cancel it.
However, if you place an order that you do not intend to get filled to make the market think there is demand when there actually isn’t, that is illegal.
So, how do they prove this? Well, proving intent is hard, unless you’re dumb enough to send emails saying, for example, you want a smart order type that won’t get filled.
However, if you place an order that you do not intend to get filled to make the market think there is demand when there actually isn’t, that is illegal.
So, how do they prove this? Well, proving intent is hard, unless you’re dumb enough to send emails saying, for example, you want a smart order type that won’t get filled.