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6.3¢ acrux limited

Just to clarify - for instos anyway: - UBS holds/owns the stock...

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lowwwwy

119 Posts.

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26/11/14

13:51

Post #: 14356635
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Originally posted by Menza ↑

Ok... Shorting is actually a slightly complicated process.

A large institution (in this case UBS) needs to hold the actual equities. A client of UBS can then 'borrow' the stock from UBS (paying a small premium to do so). They can then give the stock back to UBS when it suits them. If the share price falls, then the stock they give back to UBS can be purchased at a 'discounted rate', hence the profiteering from a drop in the share price.

Now in Acrux's case, it appears the bump in share price on Thursday last week caused some short sellers to panic, essentially causing them to 'buy back' and then self-perpetuated the share price rise.

It's similar to a margin call scenario, however just in reverse.

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Just to clarify - for instos anyway:

- UBS holds/owns the stock
- Client A sells a position short in that stock
- Prior to settlement, Client A borrows the stock from UBS to be able to settle their short sale (they borrow the stock against cash deposited with UBS at a crap rate)
- When they feel like it or when they can buy back the stock on the cheap, Client A buys back on market and on settlement of that buy, returns the stock to UBS. UBS gives back the cash + interest.

ACR Price at posting: $1.35 Sentiment: None Disclosure: Unspecified
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(20min delay)
Last 6.3¢		Change 0.000(0.00%)		Mkt cap ! $18.31M

Open	High	Low	Value	Volume
6.3¢	6.3¢	6.0¢	$9.464K	154.3K

Buyers (Bids)

No.	Vol.	Price($)
1	68974	6.3¢

Sellers (Offers)

Price($)	Vol.	No.
6.4¢	4393	1

View Market Depth

No.	Vol.	Price($)
1	68974	0.063
1	7903	0.062
3	39326	0.060
1	20000	0.059
3	60723	0.058

Price($)	Vol.	No.
0.064	4393	1
0.066	51620	2
0.067	46144	4
0.068	50000	1
0.069	14507	1

Last trade - 14.31pm 16/08/2024 (20 minute delay)

ACR (ASX) Chart