Hi trishks, buddy, etc, The restrictions brokers impose on their...

Hi trishks, buddy, etc,

The restrictions brokers impose on their clients have come about as a result of Sanford being heavily fined by asic as a result of a client who ramped a stock a few years back. So the broker coped the fine and not the client even thought the broker was unaware that the client was deliberately ramping a stock. Consequently, we are all stuck with these sort of restrictions now.

Traders who repeatedly buy or sell small parcels of shares to control the price do it via a contract broker. eg ThinkMinc, TraderDealer, Amscot, etc (google). With these brokers the brokerage is applied to the total traded for the day, not each trade.

If a trader keeps pushing the sp lower to the buy side with small sell trades it is because he has a large buy order there and is trying to induce someone to sell into it. Visa versa.

Hope this helps.