Aaron Nathaniel S_ Scott#9

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What is layering in forex markets and how does it differ from spoofing?

Layering is a type of manipulation where traders place multiple orders at different price levels to create artificial pressure. Unlike spoofing’s single large order, layering builds the illusion of consistent demand or supply. For example, a manipulator may place staggered sell orders above the market to suggest heavy resistance, scaring buyers. Once traders react, the manipulator cancels the orders and executes in the opposite direction. Institutions identify layering patterns using surveillance algorithms, while regulators impose penalties. Retail traders should know that sudden “walls” in order books may not be genuine. Layering emphasizes the need to combine technical and fundamental analysis, not rely solely on raw book signals.