There are basically 2 types of orders on the ladder at any time. Genuine and non-genuine.
In case of the first one, the buyer or seller is willing to buy or sell the amount at his bid or offer.
In the second case, the trader is usually posting a much higher quantity than he is actually willing to buy or sell. This quantity is usually so high, that it stands out on the ladder.
There are all sorts of games and tricks traders play on the ladder. Sometimes they spoof to create a false impression in other traders mind as to what the supply and demand is around a certain price level.
They spoof to scare people away or sometimes they do the same for the opposite reason. They want to attract the market to their order. People are curious and they bid the price up, or offer it down to the spoof so that they can see and test whether this order is genuine or just spoof and removed immediately.
There are lots of algoritms as well, that are programmed to spoof, but it is never to easy to figure out, who is doing it and with what intention.
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