Hound of Hounslow : Navinder Singh Sarao!

I always get fascinated to read about crime stories and cases. My interest on this subject is so much that I get into a deep dive investigation into any matter which excites me. I remember, once "Pablo Escobar" topic interested me so much that, I went on to read out all the articles and watched every videos over the internet. Likewise, when I Learnt about Navinder Singh Sarao, I could not stopped myself to get a deep dive into the matter. In the context of cybercrime, Navinder Singh Sarao is considered one of the most famous individuals associated with Spoofing in the stock market.

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Navinder Singh Sarao is alleged involved in the 2010 "Flash Crash" in the financial markets where he is accused of using spoofing techniques to manipulate stock prices significantly. Although it took several years for authorities to apprehend him after the incident.

What is spoofing?

In the share market, "spoofing" is a form of market manipulation where a trader places large buy or sell orders with the intention of creating a false perception of demand or supply, but then cancels these orders before they are executed, ultimately influencing the price of a stock by misleading other market participants into believing there is greater buying or selling interest than actually exists; this allows the spoofer to profit by trading against the artificially moved price.

Here is an example of spoofing :

A trader might place a large buy order for a stock, making it appear like there is strong buying interest, causing the price to rise slightly. However, they quickly cancel this order before it is filled, then immediately place a smaller sell order at a higher price to profit from the temporary price increase.

In pursuit to make enormous amount if wealth Sarao get into stock trading. He brilliantly made use of computer algorithms to manipulate stock market. Navinder Singh Sarao is a British Indian stock market trader. Sarao is also known as the "Hound of Hounslow". He was a self-taught trader who used computer algorithms and futures markets in his unique trading approach.

What he did?

In 2010, Sarao placed orders for thousands of E-mini S&P 500 stock index futures contracts, which he planned to cancel later. These orders were "replaced or modified 19,000 times" before being canceled. This is an example of spoofing, which is a form of market manipulation where traders place a bid or offer with no intention of fulfilling it.

Sarao was arrested in 2015 and extradited to the US. He pleaded guilty to one count of electronic fraud and one count of spoofing. He was sentenced to one year of home detention and forfeited about $7.6 million in gains. Sarao's case sparked debate within the financial community. Some view him as a scapegoat for systemic issues, while others see him as a symbol of greed and manipulation.

People often chose wrong path in order to make quick money, but the way Sarao manipulate the stock market is unimaginable. Still every wrong acts meet a bad end and so does Saroa. But I am sure he is still active somewhere working his genius mind.

Peace!!

Namaste @steemflow

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