Manipulation refers to deceptive or contrived actions taken by individuals or groups to control or distort the price or trading dynamics of a financial instrument such as a stock, bond, or currency.
These practices mislead market participants about genuine demand, supply, or value. Common schemes include pump-and-dump, where the price is inflated before selling, short-and-distort, where negative falsehoods are spread to drive a price down, and order spoofing, where fake orders are placed to mislead other traders.
Such manipulative behavior undermines market integrity, misallocates capital, and poses risks especially in less liquid or low-volume markets, where it’s easier to exert influence.
