How is it defined by brokers, and how can one avoid it?
I think it is similar to stop hunting, apparently brokers can somehow creating a price spike at certain levels in the market aimed at taking out peoples orders by hitting their stop losses. Im not entirely sure if in order to do this they would actually enter the market with a large order themselves to create this price spike or if they manipulate the price feed and create a false candle.
I have seen posts where traders are denied checks after being accused of “sniping”. Is it possible for traders to “Snipe” and provide a broker an excuse for denying payments? That was the gist of my question.
Sniping is considered something done by brokers not traders, though it is debatable whether or not it truly happens.
As far as brokers denying payouts, they normally have some sort of small print that allows for this kind of action however, any broker practising this without just cause would get shunned by the trading community and essentially, it would not be in the brokers interest. That is unless the broker is a complete scam.
i don’t really think this occurs, more like a myth.
An easier way to stop bid snipers is to offer ‘Second Chance’ sales to bidders who outbid by a sniper at the last minute. This is good for you, and for them – they still get to buy the item they wanted, and you have just made two sales, one to the sniper and one to them.
“Sniping” is a myth. Brokers can get in a real trouble if they are caught manipulating price in their software. Is easy to detect, just open another account with another broker and compare the market at the moment were you got stopped out.
This “sniping” myth was created by newbies traders that see the price hitting their stops and then reverse. But this is not because of “sniping”, they just places their stops in a bad place. A too obvious place…
Stop hunting is a total different thing, big institution such as banks can move the price becasue they have a lot of money in the market, they have and idea of where the stops are placed so they moved the market to “eliminate” the stops and then reverse. But that is legal, they can do it because they have the power. So if you don want to get stopped out and then see how the trade goes in your favour, then you need more experience, more practice, because you are trading against the best traders.
sniping is just folklore guys. seriously.
it’s easy to avoid because it never occurs.
Every…! market maker runs a sniping team, to think otherwise is a fantasy land
(where politicians are honest)
If you are consistantly profitable the s/w will tag you for consideration
eg: code injection = slowing your trades to reduce profitability
…manual handling = try making a profit… (better yet try getting them to admit it!)
Basically if you find your trades slowing down, either start using oco’s, or start hunting for a new broker…with a web interface not a platform!!!
If you’re wondering where this came from,
A LOT!! of drinks with my account manager who accidently let slip a few little gems.
(thank you nikka whisky 
)
So sorry, no urban myth just a fact, the market makers are in business to make money…
Have fun trading…