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Pump

A sharp, promoted advance in price driven by coordinated buying and hype rather than by information.

A pump is the first half of a pump-and-dump. Price is driven up while enthusiasm is manufactured - posts, calls, screenshots, influencer mentions - so that a larger group buys into the strength. The organisers then sell into that demand.

Pumps are most common in low-float shares and thinly traded tokens, where modest volume moves price a long way. Organising or promoting one is market manipulation and illegal in regulated markets, and paid promotion without disclosure is an offence in many jurisdictions. For the participant, the reliable observation is that if you learned about it from the promotion, you are the demand. See exit-liquidity and shill.

Related: pump-and-dump, exit-liquidity, shill, market-manipulation

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

Bid-ask spread in an order bookSell orders stacked above buy orders with a gap between the best of each.SELLERS (asks)50.0690050.051,40050.0460050.011,10050.002,30049.99800spread = 0.03BUYERS (bids)
The bid-ask spread. Buy orders sit below, sell orders above, and the gap between the best bid (50.01) and best ask (50.04) is the spread you pay to cross. Bar length shows the size resting at each price.

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