I guess you should be able to - futures are not affected.
I guess you should be able to - futures are not affected.
Naked Short selling eh.
With out derivatives these markets will stand still as liquidity will dry up.
FSA is a regulator, but these people don't really understand the markets they regulate.
Spread betters will still operate.
Anyone tries phoning IG Index to put large sell orders on there stock ?
Wonder what reaction you would get on multiple limit orders to sell large positions ?
Personally I hate spread betting companies and they should be avoided at all costs as direct acces is more cost affective and more reliable
With out derivatives these markets will stand still as liquidity will dry up.
FSA is a regulator, but these people don't really understand the markets they regulate.
Spread betters will still operate.
Anyone tries phoning IG Index to put large sell orders on there stock ?
Wonder what reaction you would get on multiple limit orders to sell large positions ?
Personally I hate spread betting companies and they should be avoided at all costs as direct acces is more cost affective and more reliable
Phil Mibbutz
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Pasted from IG's site. Will the FSA send the heavies round today?
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Trading short
Going short is a simple way of capitalising on a downward trend. For example, should you feel the outlook for the FTSE 100 will continue to be poor you might choose to 'sell' our Daily FTSE 100 bet at £5/point.
Say we are quoting 5101 - 5103 when you open the trade, and by the time you close your position the price has fallen to 4939 - 4941. You would stand to make 5101 (your opening 'sell' price) minus 4941 (your closing 'buy' price) = 160 x £5/point = £800.
Of course, if the market surprised you by turning upwards, the same trade could result in an equal or greater loss.
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............................
Trading short
Going short is a simple way of capitalising on a downward trend. For example, should you feel the outlook for the FTSE 100 will continue to be poor you might choose to 'sell' our Daily FTSE 100 bet at £5/point.
Say we are quoting 5101 - 5103 when you open the trade, and by the time you close your position the price has fallen to 4939 - 4941. You would stand to make 5101 (your opening 'sell' price) minus 4941 (your closing 'buy' price) = 160 x £5/point = £800.
Of course, if the market surprised you by turning upwards, the same trade could result in an equal or greater loss.
...................................
fifty2aces
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FT Alphaville » Blog Archive » HBOS: Where are the shorts?
FT Alphaville » Blog Archive » Short paranoia
"You’ll perhaps also notice the weekly change in value of stocks on loan. Short positions have been being unwound all week, and prices have still crashed."
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Shorting is a mechanism that's been integral for donkeys years, like most of the other posters i'm wondering about liquidity and volatility in the future. Will it be good for traders or bad? It's always a traders market, i know, i'm interested in how all this will pan out.
fifty2aces
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I agree, it'll be interesting to see how it works out - no idea what's going to happen really.
I imagine worst case scenario (for bulls) would be something like:
1) Massive unsustainable rally due to perception that ban in shorting means problems have been fixed.
2) People wishing to short have to rely on put buying, and put sellers can't hedge their risk by shorting, driving up the price of puts.
3) Expensive puts mean insuring long positions becomes very expensive, and liquidation seems like the safest option - heavy institutional selling.
4) Prices drop despite shorts ban - scares away new longs from Friday morning, as it suggests bigger underlying issues rather than just speculation from shorters - market gets crushed.
Who knows what will happen?
FXSCALPER2
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How stupid are the people who are in charge of our countries? This ban makes sense only if the authorities believe there are no underlying reasons for the fall in the banks. This is essentially an artificial way to stop the price from going down. Ultimately, this is going to lead to a bigger disaster. If Halifax is essentailly ****ed, there is nothing they can do to stop it from collapsing, short of printing money and handing it out, which will postpone the problem.
What they are doing here is worse than bailing the banks out: they are interfering with the normal workings of the market. The only honest thing in this markets is to short the banks. They will do anything to cover their asses after lending irresponsibly to anyone who could stand straight at 5% for years and years. Halifax was not even doing credit checks on people provided they had other loans with them. Self-serving wankers should be allowed to go bankrupt. Let them fail and the system will clean itself up over time. We are a bunch of pussies for letting this to happen.
What they are doing here is worse than bailing the banks out: they are interfering with the normal workings of the market. The only honest thing in this markets is to short the banks. They will do anything to cover their asses after lending irresponsibly to anyone who could stand straight at 5% for years and years. Halifax was not even doing credit checks on people provided they had other loans with them. Self-serving wankers should be allowed to go bankrupt. Let them fail and the system will clean itself up over time. We are a bunch of pussies for letting this to happen.
Yeh, in terms of cycles, then it's a knee-jerk tampering to buy (pardon the pun) some time, and to stem a humungous overshoot to the downside. But to what degree can the markets really be tampered without an ultra fast (in terms of the big cycle) reworking of money values accross the board, globally.
FXSCALPER2
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They have been Tampering with the markets for ages, Paul. That is the basic problem. Everything was valued at stupid levels, from houses to securities, based on interest rates that defied belief. The banks behaved like there was no tommorrow, like things couldn't go sour. When they get fukced, we bail them with tax money or allow the government to intervene in the market and stop them from the crash they deserve. This is socialism for the rich.
firewalker99
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Exactly, it's their own cheap and easy money that created this.
Let's blame it on the speculators this time
so we don't have to look at what we did to create this in the first place...Its total madness,in what they have done,will it be oil next if it starts to get back up towards $150, would they stop all the longs?this would not suprise me,its there mess that they have created,and brown is trying to blame it on the traders,he really has lost the plot,if the banks were not in such a poor state,largely because of his last 10 years,then there would not be the aggressive short selling that we have seen,and all this will create is a false market,until it implodes.
dick_dastardly
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I don't get why the SB co's have implimented the shorting ban. Surley as bookies the ban doesn't apply to them, unless they really do hedge their book in the underlying and are just protecting themselves.
dd
dd
0007
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The Banks are laughing all the way to the bank. If they were uncertain about taking unjustified risk before, they don't need to be now ........... just so long as they get in before the regulators go completely over the top.....
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