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Online Share Trading

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No Shorting of Banks allowed? (SimonPB)

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I notice that OST doesn't allow shorting of any of the bank shares, why?
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That's on SSF's, I haven't checked the warrants yet. They haven't closed any current short positions, just new short trades aren't allowed. Guess I'll just have to keep my shorts I have and not close them out? Lucky I'm in, as this Bank H&S seems very likely to break.
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On the few I just checked it seems there aren't any offers to sell on any SBK issued warrants either?
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No replies? Does this not strike anyone as even remotely troublesome or odd?
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Vano
Regular Contributor
Odd is putting it mildly. It is outrageous. As soon as my trigger fires to let me know it's time to short SBK, it's no longer possible for me to do so.
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yes i posted last week to simon that there are no puts on sbk no reponse , usually his condascending remarks but nothing ,they dont want anyone to make any moola, guess now you know if sbk is here to help u make money
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PaulR_1
Occasional Contributor
Thought it was an omen so bought instead. Hurting a bit
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Not applicable
I've been short a few days now but I also trade a system and it is really irritating when you can't add to your positions because they change the rules halfway through the game...
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Werner_1
Super Contributor
Its possibly along the same lines as the US government limited short selling a while back (dont know if that is still imposed) to stabilise the markets, its actually sometimes not in the best interest to run the banks down the drain!
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SimonPB
Valued Contributor
we can't open new shoarts as we can't borrow stock.
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john_1
Super Contributor
That and the fact they are trying to shore up the price so that the dirrectors can get their opptions bonus!!!
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platsak
Super Contributor
Even Asa which showed some resilience is dropping like a brick. Wena. Should this HS break do you have any specific exit levels in mind.
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Not applicable
hi Simon, can you explain this concept to us laymen?
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SimonPB
Valued Contributor
when you go short you are selling something you don't own to buy back at a lower price (your profit if you get it right). But the exchange rules say that you can not short naked, so one needs to borrow the stock to sell. So we need to borrow stock in order to enable clients to be able to short stocks. Make sense?
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john_1
Super Contributor
Totally..you cant have shorts and be Nakid at the same time.
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Not applicable
Thanks - badly phrased question though, sorry. What I wanted to know is why you can't borrow. Do you rely purely on long futures positions for borrowing?
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asylum
Super Contributor
we can't open new shoarts as we can't borrow stock. How convenient!!!!!!!
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What worries me is that the stock is dropping even without you guys going short. What would it do, if you could? Or is this not logical thinking??
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I am of the opinion that a free market security will always trade where the market thinks it should and that shorting is just part of the free market system. Remember that when you go short, the actual shares are sold into the market and as we know there is a buyer for every seller. Also, nothing stops people from going long a deriviative, will this push the price artificially up? I don't think so. A share will trade where it trades until it doesn't, market psychology changes the price...
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