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THREAD: How to manipulate the #footballindex market with your mate 
Here I explain, using Pogba as an example, how prone the market is to manipulation.
I do NOT endorse manipulation. It is illegal & FI can track it. But it is too easy. FI must fix this.
Ok here goes... (1/8)
Here I explain, using Pogba as an example, how prone the market is to manipulation.
I do NOT endorse manipulation. It is illegal & FI can track it. But it is too easy. FI must fix this.
Ok here goes... (1/8)
Suppose Pogba's 'Buy' price is £5, but he has no listed 'Sell' price. Also suppose that you & a mate both own 900 shares in Pogba.
STEP 1: You list 900 shares at 1p below Buy price. This drives his price down to £4.99 (since Buy price is the average of 900 lowest shares).
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STEP 1: You list 900 shares at 1p below Buy price. This drives his price down to £4.99 (since Buy price is the average of 900 lowest shares).
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STEP 2: Your mate can now list their 900 shares at £4.98, which in turn drives the Buy price down to £4.98.
STEP 3: You CANCEL all 900 shares that you originally offered at £4.99. Buy price doesn't change from £4.98, since it shows the average of your mate's 900 shares.
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STEP 3: You CANCEL all 900 shares that you originally offered at £4.99. Buy price doesn't change from £4.98, since it shows the average of your mate's 900 shares.
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STEP 4: You can now re-list those shares for sale at £4.97.
STEP 5: Your mate cancels their offer of 900 shares at £4.98 and re-lists at £4.96.
STEP 6: Rinse & repeat. Unlikely atm that any of these offers will get matched. If other traders do want to buy, they will Bid.
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STEP 5: Your mate cancels their offer of 900 shares at £4.98 and re-lists at £4.96.
STEP 6: Rinse & repeat. Unlikely atm that any of these offers will get matched. If other traders do want to buy, they will Bid.
(4/8)
STEP 7: After many iterations, your mate is now offering 900 Pogba shares for £4.50! This means the Bid Zone is much lower. You cancel your own Sell Orders & start placing bids as low as you like (e.g. £4). You ensure you are the highest bidder, if there are any others.
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STEP 8: A poor, unsuspecting trader is panicking as a result of the drop and wants to exit his position in Pogba. An 'Instant Sell' price has finally appeared (your Bid of £4!). It is lower than the trader would have liked, but with the shares plummeting, he sells.
(6/8)
(6/8)
STEP 9: Once you are sated with £4 Pogba shares, your mate cancels his 900 Sell Orders. The price might rebound to £5, although this is unlikely as other traders will already have placed offers lower than that during the drop. Either way, you've got yourself a bargain!
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SO HOW DO @FootballIndex PREVENT THIS HAPPENING?
The issue starts from a fundamental lack of market liquidity, which means that offers don't get matched. The current inability to see the true depth of the market also makes matters worse.
Traders, what do you think?
(8/8)
The issue starts from a fundamental lack of market liquidity, which means that offers don't get matched. The current inability to see the true depth of the market also makes matters worse.
Traders, what do you think?
(8/8)
