"This way, i betting on a spread. I am betting on BHP outperforming RIO. Thats the trade!
This happens across the board of EVERYTHING: stocks, bonds, currencies, ETF's, indicies...you name it.
Now if you can not short...then not as many investors will go long "naked" (ie, without having short protection too)."
By doing this don't you increase market volatility, by increasing the number of contingent holdings (selling one holding triggering sale of the other). Seems to encourage speculation over investment, is this good for markets?
short ban on german stocks, page-27
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