PINL:GRPOF - Post by User
Post by
SnoopDawggyDawgon Feb 28, 2018 2:48pm
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Post# 27638354
Shorts (Echelon) are closing in the 'dark' market
Shorts (Echelon) are closing in the 'dark' marketWhy are they doing this? Because if they were stacking their bids in the open market, it would set the SP surging to a price that could potentially be well above what they began their short positions at. If you're wondering why the level 2 data looks so thin, it's intentional. Let's say you saw a bid for 10,000 @ 0.86, and decided you wanted to sell and perhaps buy back lower. So, you put in a sell order for 15,000 @ 0.86 hoping that the extra 5,000 will show on the ask side and frighten those watching the slow but uncertain uptick. But instead, your entire 15,000 order gets swallowed up and the bid is still 10,000. Well, that's the 'dark market', and that's how they avoid a short squeeze.