RE:RE:RE:Big shortBellsey wrote: Rcash can you help me understand what you were talking about shorters buying under the bid or whatever? What methods do they use to manipulate penny stocks like LIB. So they borrow the shares and then put up huge wall with those borrowed shares, and just move the wall as the price drops? Must take a lot of capital to be able to pull that off (100s of k's of shares).
Thx.
Sure . What I said was shorts selling under current bid . Say the bid is at .80 a short sale will dump the free short share at less then bid in order to create a drop in price . Normal sellers might dump into the bid but it would be unusual to want to sell for less then offered ;) As for the wall comment I've done this before on stocks I just shy away from doing it to LIB . It requires lots of shares yes . The object is to discourage buying normally coinciding with shorting . This is done by setting a large ask a few cents above trading simultaneously shorting and then finally setting a buy just below your short sale . It limits the range of trading . Your shares get sold for profit if it trades up , you make $ if the short works and collect shares at a cheap price from panic sellers . This is what's been taking place lately with LIB . This tactic is applied by experienced traders and financial institutions alike . Requires capital . The only risk is that big volume steps in fast and you get your wall stolen,you get hurt on the short sales, and your bid never fills ! Lol Risk vs Reward . This is why you see the big bounces . Hope that helps