Layering ( layering )- strategy, which came under the ban of American regulators

High frequency trading, depending on the strategies used, has a different effect on the market condition. Some of them are draining liquidity from the market, other — add liquidity to the market. Many of them are the cause of sudden unexpected movements in market quotations., and also generate new borderline methods of unethical, and sometimes illegal income generation on stock exchanges. Such a controversial practice is the layering method. ( layering), the essence of which is to create the possibility of artificially shifting the quotations of purchases and sales of securities in order to force the rest of the exchange market participants to make a profitable deal for the manipulator.

Liquidity and volatility

If the securities, certain goods, various resources can be sold and purchased very quickly, while their cost remains practically at the same level, then they have this property, как ликвидность. The highest degree of liquidity is inherent in cash. The Forex market demonstrates its level of liquidity in this indicator, as trading volume. The more transactions are associated with a particular asset, the more liquid it is. The highest degree of liquidity is inherent in the foreign exchange market, on which Forex trading is carried out daily, which turns into about three trillion US dollars, that more, than the turnover of the world stock market several times. Therefore, the Forex market has the highest degree of liquidity.. The liquidity of a currency pair is determined on the exchange by the presence of transactions, связанных с ней, that is, if there is a buyer, who is trying to purchase a certain amount of this currency, no matter how much volume, even if it is small, the main thing is that transactions are made. Therefore, the most liquid are pairs., in which both currencies are popular among traders, they …

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