Does price manipulation really exist in financial markets? – Others – December 6, 2023

Yes, there are attempts to manipulate prices in financial markets. This refers to deliberate and illegal operations that artificially influence the price of a security or market instrument. This may be accomplished through disseminating false information, creating artificial supply or demand, insider trading, and other fraudulent activities. Attempts to manipulate prices can have serious implications for investors and the overall market, resulting in losses for some and profits for others. Regulators and enforcement agencies aim to identify and reject such attempts to maintain the integrity of financial markets.

How to manipulate financial markets:
For anyone who wants to make money in the financial market, it is essential to develop a good strategy and learn about market manipulation techniques such as whales and market makers. This will prevent you from losing your capital and increase your winning percentage.

Below is a brief explanation of how the markets are manipulated.

1- Spreading false news:

These rumors are presented at various levels in the media in the form of rumors. These are posted on social networks and widely covered by bloggers in the language of famous people or trustworthy sources.

2-Buy or sell counterfeit goods:

When a real person or robot at a broker takes action to increase order volume and remove pending orders before the price is reached, the market begins to change direction and people who buy based on those orders lose money.

3- Wash Trading:

In this case, robots and real individuals buy and sell at the same time, and there is a lot of market trading volume on useless candles (Doji), so traders interpret these as support and resistance lines (smart money points). For example, during order selling, you create technical patterns such as triangles and channels.

4- Stop hunting:

Many whales know other traders’ pending orders and stop losses and act based on them to cash out or take positions.

5- Price manipulation:

Brokers or exchanges create fake prices that provide short-term direction to the market and activate and stop orders.

solution:

• These events typically occur in assets with smaller market capitalizations, so trade assets in the broader market.
• Get hands-on access to the official calendar presentation resources available live on TW Calendar.
• Work with reputable regulated brokers and exchanges that prohibit some of these practices.
• Trade on higher time frames where there is no possibility of manipulation or pattern formation.
• Avoid using pending orders as much as possible. There are robots that can place hold and stop-loss orders without having to send or register orders with a broker.

I hope this article helps you perform better in the markets.