Donna Forex Forum

General => General Trading Discussion => Topic started by: Paul.Trafford on September 27, 2017, 07:24:50 AM

Title: Manipulation of price movement
Post by: Paul.Trafford on September 27, 2017, 07:24:50 AM
Hi all.

Currently doing a research. Is it possible to manipulate the price movement ? By this I mean traders, with serious funds, to somehow make the price of certain stock to go up / respectively go down ? Could you please share your thoughts ?
Title: Re: Manipulation of price movement
Post by: Trunk on September 27, 2017, 06:53:30 PM
Hi all.

Currently doing a research. Is it possible to manipulate the price movement ? By this I mean traders, with serious funds, to somehow make the price of certain stock to go up / respectively go down ? Could you please share your thoughts ?

Yeah its easily done by big whales, for example during news release or major events. The favorite one is whipsaw what is especially maddening as even your right guess of direction compromised with involuntary market movement in opposite direction with the purpose of harvesting stops of small traders. Big whales have order flow at their disposal and love to trigger clustering of SL in order to get better entry and profound price action.
Title: Re: Manipulation of price movement
Post by: Lastonny on September 28, 2017, 10:51:49 AM
In stocks more likely.
Especially so-called "penny stocks" are famous with such movings.
Title: Re: Manipulation of price movement
Post by: SteveCot on September 28, 2017, 10:57:58 AM
In stocks more likely.
Especially so-called "penny stocks" are famous with such movings.

Tim Sykes comes to my mind immediately. What a guy!!
Title: Re: Manipulation of price movement
Post by: Eliza Abrams on January 05, 2018, 03:13:56 PM
You have to be a financial institution or a trader with truly major capital to make any kind of a dent.
Title: Re: Manipulation of price movement
Post by: Iverson on January 10, 2018, 12:42:12 AM
Hello. In the penny stocks is where it is most reflected. :D
Title: Re: Manipulation of price movement
Post by: Hilapur on January 28, 2019, 01:46:41 PM
Yes, it is relatively easy to be done, but only very big players are in position to do this, simply because you need to have  huge amount of money in order to move the market. The rest of us can only sit and watch. Although market manipulation is not legally allowed, it happens from time to time
Title: Re: Manipulation of price movement
Post by: drunkfx on January 31, 2019, 12:48:25 PM
Hi all.

Currently doing a research. Is it possible to manipulate the price movement ? By this I mean traders, with serious funds, to somehow make the price of certain stock to go up / respectively go down ? Could you please share your thoughts ?
Yes you can observe manipulation during news. It's called stop hunting and is often used by big banks. Somehow I learned this tactics and now follow it to make profit.
Title: Re: Manipulation of price movement
Post by: donbon2 on January 31, 2019, 01:17:15 PM
options are the way most manipulation takes place in FX

also these days trading algos for banks and hedge funds and auto price makers are not humans and sometimes over react to news or do not react at all - till the next day -- it is very unusual price movement

FX is a weird sort of thing - even though you are right - you can still be wrong -- this is simply due to the market factoring in things before they happen and taking profit after.
Title: Re: Manipulation of price movement
Post by: Nasdaq100 on January 31, 2019, 02:04:42 PM
Just because you can't figure out where the market is going, it does not mean that its being manipulated with!
Title: Re: Manipulation of price movement
Post by: drunkfx on February 01, 2019, 06:46:54 PM
options are the way most manipulation takes place in FX

also these days trading algos for banks and hedge funds and auto price makers are not humans and sometimes over react to news or do not react at all - till the next day -- it is very unusual price movement

FX is a weird sort of thing - even though you are right - you can still be wrong -- this is simply due to the market factoring in things before they happen and taking profit after.

The famous quote says "markets can stay irrational longer than you have money in your account". This is truth is old as stock speculations.
Title: Re: Manipulation of price movement
Post by: iMusingKiMi on February 11, 2019, 09:11:02 AM
No doubt it can be done especially on penny stocks. Every companies has its own market value and penny are relatively small. That's why there are pump and dump everywhere.
Title: Re: Manipulation of price movement
Post by: y5nitro on April 16, 2019, 12:22:57 PM
We are speaking about market which has daily turnover of few billions of dollars. No matter how rich you are, it is impossible to manipulate it in any sense. However, it might be possible that some government officials say “unpurposely” something that will impose market reaction
Title: Re: Manipulation of price movement
Post by: FxTS on April 18, 2019, 06:11:02 AM
It all depends on the market we are speaking about.
If it is about Forex, there is no way to influence it as it is an OTC market with huge liquidity. The only thing could happen is when the unfair broker "draws" price spikes or widens spreads to get off the traders with short stops.
If we speak about stock, it is possible to create your own price movement, but it depends on float as the number of shares. In case of stocks with low float a group of traders with relatively large positions or one institutional player could substancially influence the price. Sometimes it stocks with low liquidity you can draw a candle with the market order on just 1k share. For this reason professional traders and institutional traders usually avoid such stocks.
As for the crypto, it works almost the same, especially for cheap altcoins. The liquidity is divided among several exchanges, so it is easy enough to move the price.
Title: Re: Manipulation of price movement
Post by: reddevil on April 19, 2019, 11:57:09 AM
What about the flash crash on Jan 3?

My question is
(1) how to trigger a flash crash if I am a banker with lots of cash?
(2) how do you actually profit from it?

i.e if I sell 1000 lots of AUDJPY, if there is low liquidity, that means instead of selling at current price of 80.00 (e.g.) , I mange to get 70.00 ( a 1K pips lower). Since it is a sell,don't the price need to go down further for me to profit? But instead during flash crash, the price quickly go back up. That means it will be a loss for me, isn't that correct? So how do I profit from it?

Title: Re: Manipulation of price movement
Post by: Nasdaq100 on April 19, 2019, 02:20:51 PM
Just like the stock market, the currency market gets manipulated with by a few people. Only difference is, the forex market is not regulated and can get far worst price manipulation without punishing those who are responsible.
Title: Re: Manipulation of price movement
Post by: Loperte on May 22, 2019, 12:46:18 PM
I think that it is much easier to manipulate stock market then forex. Forex is by far the largest market in the world, so trader would need to have significant amount of funds in order to move it to one direction. With individual stocks, trader need less money or sometimes some help from inside
Title: Re: Manipulation of price movement
Post by: BrandonHolly on May 24, 2019, 10:26:13 AM
It is possible but not so frequently made. Only during a big news or something like that.
I think it's rarely one person. Would be some institution or something.
Title: Re: Manipulation of price movement
Post by: marcopiccollo on May 24, 2019, 11:09:40 AM
Manipulating stock prices can happen quite easily, and it takes place more often than you might think. Achieving it in a perfectly legal way is no more difficult, depending on how much trading power you have.

Individual stock investors don't have ready access to these types of techniques and, consequently, they often end up on the losing end of these schemes. In this situation, a little knowledge can go a very long way.