‘Spoofers’ place orders into electronic markets with the intent to cancel or withdraw before the orders are filled.  Their purpose is to create misleading demand signals, causing the market to respond to what appear to be genuine additional liquidity, shifts in demand, price or trend reversals.  The resulting market activity based on these spoofing signals can cause the real-time bid/offer spread to move in the spoofer’s favour.

Layering is a term used to describe the process of layering multiple spoofing attempts over a period of time to move the real-time bid/offer spread in the trader’s favour, such that they can take advantage