Cancellation rate

The cancellation rate is the share of a participant's orders that are cancelled rather than executed. In modern electronic markets the majority of all orders are cancelled, which is why the rate matters only in combination with timing and size asymmetry.

market microstructure · updated 2026-09-08

Where does cancellation rate come up?

This term is used in the following manipulation techniques, each explained in full on its own page.

• Spoofing — Spoofing is placing orders a trader intends to cancel before execution, to create a false impression of supply or demand and move the price toward a smaller genuine order on the other side.

Enforcement actions involving these techniques

See also

• Order-to-trade ratio — The order-to-trade ratio is the number of order messages a participant sends for each contract or share actually executed. High ra…
• Order lifetime — Order lifetime is the elapsed time between an order being placed and being cancelled or filled. Genuine order flow produces a long…

Terms that refer here

Order-to-trade ratio · Order lifetime

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