shortorlong
Established member
- Messages
- 659
- Likes
- 28
I think it's a percentage thing. So it should only affect the big beasts. This might have implications for spread bet companies hedging their client's positions. Also it is limited to financial stocks. So it can't really apply to the index as a whole ..
Also it'll stop those pension funds from lending out banking stocks it bought for your pension to shorters who sell it, then after it has been hammered to near collapse, buy them back to hand back to the pension fund from whom they borrowed it from in the first place, but not to worry it's only your future they are screwing up. and the economy, and the banks. .. personally I'd have them all hanging by the neck from lamp posts throughout the city of London.
Also it'll stop those pension funds from lending out banking stocks it bought for your pension to shorters who sell it, then after it has been hammered to near collapse, buy them back to hand back to the pension fund from whom they borrowed it from in the first place, but not to worry it's only your future they are screwing up. and the economy, and the banks. .. personally I'd have them all hanging by the neck from lamp posts throughout the city of London.
shortorlong
Established member
- Messages
- 659
- Likes
- 28
Your right, I also received a message from CMC. "If you currently hold an open short position, you are not forced to close this and if you need to sell in order to close a long position your order will be accepted."
I pitty anyone who held a short on Friday, except the big beasts who have been creaming off all the profits from shorting the financials to hell
oh I hope they suffered However it is not affecting me because I don't trade stocks. Forex mostly for me and the occasional punt on the indices.
Anyon catch the mad rise on Friday? .. not me I scalped here an there, but failed to capitalise on the amazing rise on FTSE and on cable .. oh well next time
I believe Shortorlong got the point and understood what the SB firm's meaning rahter than Timamfaya.
But don't forget the US and UK ban which came into force since last friday does not affect the whole markets. Smart investors have many way to make the round of shorting financial firms on margin when they believe a further decline.
But don't forget the US and UK ban which came into force since last friday does not affect the whole markets. Smart investors have many way to make the round of shorting financial firms on margin when they believe a further decline.
marlintrdg
Active member
- Messages
- 204
- Likes
- 2
What I don't get with this whole shorting ban is you can still buy and sell call's and put options. You can also sell SSF. They still have to reflect the underling security or is this just made up as well? (yes i'm being cute here)
This all seams like the blind leading the blind to me.
This all seams like the blind leading the blind to me.
stevespray
Experienced member
- Messages
- 1,289
- Likes
- 156
This is where it gets tricky!
If you are trading someone elses product then it is up to them (ie your counter party) how they hedge their exposure. A good example here is a spread bet. With a spread bet you are speculating against the firms price not the underlying market so you are not actually buying and selling the underlying stock.
Similarly with a Put Option - if you buy a Put then someone else is writing that Put and is therefore exposed if it goes into the money. That exposure is not your problem. What you are likely to find is that people who offer these products might stop doing so if they are unlikely to be able to hedge their risk.
Steve.
marlintrdg
Active member
- Messages
- 204
- Likes
- 2
Thanks Steve,
I know I do a number of call ratio backspreads (apple & google) and covered calls, (real account), everyone in these positions better be able to show up with the paper to settle or they go to jail.
I know when they first started doing options in the 80's and I was told how they worked it looked then and I think it has been proven now, they are a license to steal..
Even Warren Buffett said this..
IMO I think derivatives in the real market is the underlying problem, (pun intended), here and no one wants to mess around with the eight thousand, (forget hundred), pound gorilla in the room..
In a play market like SB I'm not sure if it really matters..
Hi, everyone getherring here for happy. I am not look down on you.So if you beat CMC and make a tax free profit,congratulation.
One tiny thing I saw in your post is you said: exsiting position to be closed.
I don't think that was the original words CMC using because the ban do not apply the exsiting short position.
On the contrary, if someone had a short position in hand which is a rare resource in current market, they can set a lock position by paying a little defferent overnight charges fees. And then, when market back to its trend, close the long positon and let the short position making huge money for them.
stevespray
Experienced member
- Messages
- 1,289
- Likes
- 156
Looks like the SEC have reversed part of their ruling from last week. People who make derivatives are now allowed short positions.
Steve.
Steve.
CFD and SB are also derivatives which I don't think FSA fired at that. At beginning, US only ban the naked short, but UK CFD/SB firms misunderstand the new rules by only allow player go long on margin. That will be more risk than without the ban.
marlintrdg
Active member
- Messages
- 204
- Likes
- 2
Yeah, they all just ran into the credit swap market, now that has absolutely no regulators, no-one knows what really goes on their.
Ya gotta love these brainiacs eh?!!
Oh well, off to the beach we do go,,
c ya
timanfaya
Newbie
- Messages
- 9
- Likes
- 0
shorts cfttrader
taken TOO literaly !!! my point was that bans like this should affect the like s of falcone and his hedging cronies who make $950 000 000 a year. but as is usual its the smaller guys getting hit and of course bans like this never affect the giants!
anyway off to maldives in the morning, see you in 4 weeks.
Hi, everyone getherring here for happy. I am not look down on you.So if you beat CMC and make a tax free profit,congratulation.
One tiny thing I saw in your post is you said: exsiting position to be closed.
I don't think that was the original words CMC using because the ban do not apply the exsiting short position.
On the contrary, if someone had a short position in hand which is a rare resource in current market, they can set a lock position by paying a little defferent overnight charges fees. And then, when market back to its trend, close the long positon and let the short position making huge money for them.
taken TOO literaly !!! my point was that bans like this should affect the like s of falcone and his hedging cronies who make $950 000 000 a year. but as is usual its the smaller guys getting hit and of course bans like this never affect the giants!
anyway off to maldives in the morning, see you in 4 weeks.
