I don't understand this. I was called up by TD Ameritrade today informing me that I cannot be doing what I have been the past 2 days (neutralizing the bid back with a buy of 101 shares).
They considered it manipulation and this response of the repercussions if I continued:
"We want you to know the relevant rules about trading the securities you hold in your account, especially a practice known as manipulative trading. In addition, we want to be sure you're aware that certain trading practices may significantly increase risk levels in your account.
Manipulative Trading Practices
On occasion, clients inadvertently adopt a strategy that may violate the regulations involving manipulative trading practices. You can help to prevent this by familiarizing yourself with the subject.
- What are manipulative trading practices?
Manipulative trading practices involve the purchase, sale, or other transactions in any security for the purpose of:
- Creating or inducing a false, misleading, or artificial appearance of activity in the security.
- Unduly or improperly influencing the market price of the security.
- Setting a price that does not reflect the true state of the market in the security.
- Trades that result in no change in beneficial ownership.
- Pre-arranged trading with other parties.
Terms commonly used to describe manipulative trading practices include: wash trades, matched trades, painting the tape, and spoofing.
- What penalties are involved?
Accounts directly or indirectly engaged in manipulative trading practices may be subject to trading restrictions, account closures, and/or regulatory penalties.
Manipulative trading practices constitute a serious violation of exchange trading rules. We urge you to be careful not to engage in the sort of trading activity described above, in order to avoid these penalties."
Seems to me like the market is fair at this time..........pfft.
