Letter to exchange ..u have liquidated me by hunting my orders and targeting my orders on candles with huge wicks towards my price with no bodys that and immediately reversed.. and by canceling or just not being filled and skipped over.. by missing them by a fraction of a percentage to liquidate.. I've had orders put in twice with the same everything that i only placed once.. now I get liquidated while waiting on the secure code for my deposit to add margin.. ... and having the price manipulated all the time I have videos of the same price on the chart in the same candle having a varying and manipulated range of what amount you show or use as your price when iand its obvious while you can see multiple orders all having same buy price ordered but not executed at same time or effectively using preexisting orders as stop orders for the market and using orderbook manipulation to get liquidations and intice orders in opposite direction.. i have had pending orders that would have went parabolic and the exchange used its math tricks to get all the way down to a .000001 and miss my order before grabbing all the shorts and liquidating them at a price percentage points below the order price my order which would have been a massive profit and was placed at a price off a chart that you dont use as the chart you are giving the impression of the orders and prices for those.. instead u guys pick tovinstead was that wasnt and be well below my buy price be missed not going through shorts and longs having different

Answered at Oct 20, 2024

Market Manipulation and Order Execution Issues: A Detailed Analysis

Introduction

In the fast-paced world of trading, especially in cryptocurrency markets, traders often face challenges that can significantly impact their financial outcomes. One such trader has raised concerns about potential market manipulation and order execution issues on an exchange. This report delves into these issues, providing a clear analysis and offering recommendations for traders to navigate these challenges effectively.

Order Execution Challenges

1. Order Hunting and Skipped Orders

The trader reports experiencing order hunting, where their orders are targeted by large wicks on candles that quickly reverse. This phenomenon can occur when market makers or large traders push the price to trigger stop-loss orders, causing a cascade of liquidations. Additionally, the trader mentions orders being skipped or not filled, missing by a fraction of a percentage. This can happen due to:

  • High Volatility: Rapid price movements can lead to orders being skipped if the price moves past the order level before it can be executed.
  • Order Book Depth: A shallow order book may not have enough liquidity to fill all orders at a specific price point.

2. Duplicate Orders and Delayed Margin Deposits

The trader also notes instances of duplicate orders and delays in margin deposits due to waiting for secure codes. Duplicate orders can arise from technical glitches or user errors, while delays in margin deposits can lead to unwanted liquidations if the market moves against the trader's position during the wait.

Market Manipulation Concerns

1. Price Manipulation and Order Book Dynamics

The trader highlights concerns about price manipulation, where the same price on the chart shows varying ranges within the same candle. This can be indicative of:

  • Spoofing: Placing large orders with no intention of executing them to create a false impression of demand or supply.
  • Wash Trading: Executing trades with oneself to create artificial volume and manipulate prices.

2. Use of Preexisting Orders as Stop Orders

The trader suggests that preexisting orders are being used as stop orders to manipulate the market. This can occur when large traders or market makers use visible orders to influence market sentiment and trigger stop-loss orders, leading to forced liquidations.

Recommendations for Traders

1. Use Advanced Order Types

To mitigate the risk of order hunting and skipped orders, traders can use advanced order types such as:

  • Limit Orders: Specify the exact price at which to buy or sell, reducing the risk of slippage.
  • Stop-Limit Orders: Combine stop and limit orders to control the execution price.

2. Monitor Order Book and Market Depth

Regularly monitoring the order book and market depth can provide insights into potential manipulation. Look for patterns such as large, quickly canceled orders or sudden spikes in volume.

3. Diversify Trading Strategies

Diversifying trading strategies can help reduce exposure to manipulation. Consider using a mix of technical analysis, fundamental analysis, and algorithmic trading to make informed decisions.

4. Choose Reputable Exchanges

Select exchanges with a strong reputation for transparency and security. Look for platforms that offer robust trading tools, clear fee structures, and responsive customer support.

Conclusion

The issues raised by the trader highlight the complexities and challenges of trading in volatile markets. By understanding the dynamics of order execution and market manipulation, traders can better protect themselves and make more informed decisions. Implementing advanced trading strategies and choosing reputable exchanges are crucial steps in navigating these challenges effectively.