Which practice is described as constricting the market by building up large positions?

Which practice is described as constricting the market by building up large positions?

• A. Parking
• B. Spoofing/layering
• C. Ramping
• D. Cornering

Answer: (D)

Cornering is when a trader amasses enough of a commodity or its derivatives to wield real influence over price by controlling the available supply. With that level of control, the market becomes constrained as others struggle to obtain what they need, and the cornerer can push prices toward the desired level or squeeze out competitors who depend on that asset. This kind of manipulation targets how price is discovered in normal trading, by creating scarcity rather than by genuine changes in demand or supply. Parking, by contrast, involves holding assets for later use rather than building lasting market control. Spoofing and layering rely on placing large orders to deceive others about true demand or supply, not on actually locking up supply. Ramping aims to push prices higher through heavy buying, but it doesn’t necessarily secure long-term control of the market’s supply like cornering does. So the phrase that describes constricting the market through large-position accumulation matches cornering.

Cornering is when a trader amasses enough of a commodity or its derivatives to wield real influence over price by controlling the available supply. With that level of control, the market becomes constrained as others struggle to obtain what they need, and the cornerer can push prices toward the desired level or squeeze out competitors who depend on that asset. This kind of manipulation targets how price is discovered in normal trading, by creating scarcity rather than by genuine changes in demand or supply.

Parking, by contrast, involves holding assets for later use rather than building lasting market control. Spoofing and layering rely on placing large orders to deceive others about true demand or supply, not on actually locking up supply. Ramping aims to push prices higher through heavy buying, but it doesn’t necessarily secure long-term control of the market’s supply like cornering does. So the phrase that describes constricting the market through large-position accumulation matches cornering.