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There was a market crash in 2010, in that it is alleged that the scammer entered the sell orders with intention to cancel.

With my experience, once I enter an order( limit or market) with a brokerage firm, I can cancel it ( or say try to cancel it), but if it has already been executed then how does this guy(Navinder Singh) was able to do that. I asked a question , that seems to tell, it is possible for traders to do that but does not reveal how to do that.

And I am specifically interested it, if the trader can cancel without risk of the order getting executed.

  • You typically can't cancel a "market" order. A market order will be placed as quickly as possible as the current bid (for a sell order) or ask (for a buy). – D Stanley Oct 17 at 20:00
  • What he did is called layering, it's not possible anymore. If your order was unlikely to be filled because it was below market price, then you would have more time to cancel it. – Hart CO Oct 17 at 20:14
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No, You cannot enter any order without the risk of the order getting executed. In my humble opinion, the fault resides with those who read and look at the order books and then take advantage.

But the general public loves a hanging, and I fully agree, This article is by a similar sounding name.

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I think you're misunderstanding what Singh did.

Singh entered orders which he intended (in other words, he planned, or he wanted) to cancel before those orders executed. And he was successful; he did cancel the orders before they executed. But if the orders had executed, he would not have been able to cancel them.

You seem to think that Singh canceled orders after they executed, or that he prevented his orders from executing, and you're asking how he did that. But he didn't do that.

  • thanks, I am not thinking that he cancelled the order after they were executed, but how can he intend or plan for cancelling the order as if it is market order it will get executed and if it is limit order then he may cancel it, but if the price has reached, then he cannot cancel it. I see a term called layering , how does layring work – Raj Oct 17 at 21:02

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