10 times in a row (definitely no coincidence) the price of a stock I was buying/selling jumped up/down immediately before my order was placed. Up if I was buying and down if I was selling. The last two times I actually just bought/sold to test if it would happen again, and surprise-surprise, it did. We’re talking about orders of around £2500.
Could anyone explain this as it seems very much like a scam?
Yes, I was following the market live on a different site and could see how my placing an order would suddenly push the price in one direction, which would then almost instantly jump back just after my order was complete. Could you explain this?
Example: The price is 100, I place an order to buy, the price immediately jumps to 110 (the price I am given) then jumps back to 100. Later, I sell with the price at 100, it immediately jumps to 90 (the price I am given) then jumps back to 100. This pattern repeats several times.
Yes, as explained here. When you sell, you’re always selling at a lower price than the buyer is buying at, and vice versa for a buy. A middleman called a market maker takes the difference, which is called the spread. If trade volumes are low, the spread can be wide, i.e. 10-15%.