hi,voltaire:
Without adding any fuel to the fire, here is my understanding.
Most of the shares being borrowed to short are from those so-called "index funds". They don't really care whether the market is going down or up. All they need is to "beat the market".
Now they lend shares to the shorters, the market goes down. But they can charge the borrowers based on the value of the shares. So they can always safely beat the market (at least by the margin they charge), with almost no risk.
This is my understanding only. Happy to hear other opinions.
jacky
- Forums
- ASX - By Stock
- XJO
- some are getting their shorts in a knot
some are getting their shorts in a knot, page-39
Featured News
Add XJO (ASX) to my watchlist
|
|||||
Last
8,092.3 |
Change
139.100(1.75%) |
Mkt cap ! n/a |
Open | High | Low |
7,953.2 | 8,092.3 | 7,952.8 |
Featured News
XJO (ASX) Chart |
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, CEO
Anthony Noble
CEO
SPONSORED BY The Market Online