Фин. Q&A

What is painting the tape in forex trading?

Charles Matthew L DeLuca

1 месяц до

Painting the tape is a manipulative tactic where traders execute small trades at artificial prices to influence how charts or price feeds appear. In forex, this may involve colluding parties trading among themselves to push a pair into a false breakout, attracting momentum traders. Benefits for manipulators: triggering stop orders or algorithmic systems to profit from the reaction. Risks: illegality, reputational damage, and regulatory fines. Institutions and exchanges use trade surveillance to flag unusual activity patterns. Retail traders must remain cautious when volume appears inconsistent with fundamentals—false breakouts can be traps. Painting the tape is a reminder that not all price action is organic.