I am sort of new to this, well about 12 months, and just to make sure I read what you are saying correctly, the manipulator has sold shares he/she doesn't own at a higher price, then manipulates the price down so he/she can actually buy the shares required at a lower price, within the T+2 window?
Not everyone understands the jargon of the share market, and I am eventually getting there, but it also helps new investors to understand as well. So be nice, if I sound a tad stupid.
I gather you also need volume to do this. From what you have said this is illegal, and heavily fined. Given the computer age of transactions, surely this can be picked up fairly easily?
In this instance, due to smaller volumes the manipulator has been caught short, as with news, and action elsewhere on the market, the price and volume didn't stay where it needed to, so there could be a loss if the shares have to be purchased at a higher price. An interesting gamble.
Excuse my ignorance, and I am curious to how this happens. Because, for instance, in a bank account you can't spend until you have money in the account. So how can you sell shares, before you own them? I guess you trust that the person is being honest, and have an overdraft system. Maybe that should change.
I thank you for your posts, and I hope you can nail the person. Besides just bots on some stocks, I have other holdings that do the same as CXO, which has been perplexing. I guess, as no one is being caught, money can be made, and not just on CXO!!
Interesting play being made, I guess across many small cap riskier and more volatile stocks, so they can't be caught. However, given the technology available, it should be a no brainer, if trading has been set up correctly, that is you can't sell what you don't have. Not just say you have the stock. What a loop hole!
Shame manipulators on other stocks can't be caught short as well. Is there any strategy that can be used to catch them out? I would be interested to know.
Thanks.
Cheers
GSM
CXO Price at posting:
8.8¢ Sentiment: Hold Disclosure: Held
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