I am not by any means unaware of the possibilities in shorting stock and naked options
But these plays have a feedback effect on the actual share...
If there was a huge short position in a cfds
say in telstra.....That is then closed out at a profit
say at that price of $4.20
Is this at the end of the day become real stock bought in the market ?
Does the concept of short covering apply in any sense ?
Can cfds be used to manipulate share prices..Or is it totally separate mkt contained in itself with the only a contract between the broker and client ?
Could there be more cfds sold short than actual shares outstanding and no problem ??
If this is so... Can then actual shares and options etc be used to manipulate cfds ?
