A country bans short selling and what do you get...2% market falls...
Thats what the market is telling you.
The only reason German POLITICANS have introduced this proposal is because retail mum + dad investors dont understant derivatives, risk-management the operation of the markets.
They are ignorant as to the operation of short selling. They fair to understand that most shorts are taken out in CONJUNCTION WITH A LONG PAIRS TRADE ON ANOTHER STOCK.
TAKE OUT THE SHORT, TAKE OUT THE LONG.
TAKE OUT THE LONG...TAKE OUT A FEW HUNDRED POINTS MIN FROM THE MARKET...minimum.
PS: i expect to get more thumbs down then up for this post but that would only re-iterate the point that most casual, mum+dad investors just dont get it!
