Spoofing is a technique that traders will employ to manipulate the market in their favour. The way spoofing works is traders will place large bets visiblly on the market to make it look like there is artificially high levels of backers or layers, depending which way the trader wants the market to move.
So if a trader has gambled that the market will shorten and has already matched his back bets. He may decide to "help" the market shorten by placing a large back bet on the market. The aim is deception and not to actually get the back bets matched. So the trick is to price the back bet a little higher than the current market price. Ideally you want your back bet to be visible at the 2nd or 3rd lay bet price on the market. You want to make sure you are at least higher priced than the current price. With a large enough spoof bet, it creates the illusion of a "cap" on the amount the market price can swing to the upside. This perception makes it more likely that the market will shift down as the market reacts to the big spoof bet.
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