Spoofing Detection Algorithms

Spoofing Detection Algorithms are automated systems designed to identify manipulative trading behavior where large orders are placed with no intent to execute. These orders are used to create a false impression of supply or demand to influence the market price.

In crypto markets, these algorithms monitor order book activity for patterns such as rapid order cancellation and placement at price levels far from the current market price. Detecting this is vital for maintaining market integrity and ensuring fair price discovery.

These systems help exchanges and regulators enforce rules against market manipulation.