How does the shorting work though? I don't know - I just see what I see,
Let's say I borrow 1,000,000 shares at $8. I sell [short] them from $8 down to $6 which triggers a whole lot of other selling/volume. Then I buy them all back at between $4 and $5 but I hold them in another account. At this stage I still owe "hold" my 1,000,000 borrowed (shorted) shares. And I have the 1 million in $4/$5 shares I bought when the price plummeted and I'm holding a ~$2m profit.
The price recovers like is happening now. When it gets near $8 again or I feel that I'm clearly in profit. I just transfer the $5 shares back to the owner I borrowed them off and pay them some of the capital gain (or some scheme that is effectively protection from capital loss - I assume that would be in the loan contract).
I'm not sure of the legalities or whether this is how it works but it seems pretty easy to me if you are a player with the capital and technical means.
They've done it at least twice now. We re watching it come back in front of our eyes.
Are there any experts out there that can tell me if this is how it works?
How does the shorting work though? I don't know - I just see...
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Last
$2.96 |
Change
-0.100(3.27%) |
Mkt cap ! $558.2M | |||
| Open | High | Low | Value | Volume |
| $3.08 | $3.08 | $2.96 | $1.630M | 544.6K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 13888 | $2.96 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.00 | 2552 | 4 |
View Market Depth
| Last trade - 16.10pm 03/05/2024 (20 minute delay) ? |
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Last
$2.96 |
Change
-0.100 ( 3.33 %) |
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| Open | High | Low | Volume | ||
| $3.05 | $3.05 | $2.96 | 98253 | ||
| Last updated 15.59pm 03/05/2024 ? | |||||
| WBT (ASX) Chart |