Simon PB- price manipulation

[schizo]

often when watchin prices, you see trades that go through with very low volume sometimes even as low as one share, this is also often followed by a very large volume trade, is this price manipulation if you call it that

[SimonPB]

not in the sense that the JSE is going to come a knocking. What is possible happening is traders trying to force others to move. I got a numch of shares to sell in a low liquid share, the spread is wide. So I sell one in the hope that teh buyer will move up to my price to avoid the brokerage trap. Of course if he doesn't, then I have trapped myself. Otherwise often futures basket trading.

[asylum]

I thought about this morning, everyone seems to be chasing the price up so im gonna give this a bash one day, ex: if say you have 10 000 acl shares and everyone is chasing the price i think it might be possible to buy 1 ssf at market and then buy another at market after that price has been chased you then start dumping your shares at the higher price and get rid of the ssf. if you can push the price up by R2 or R3 thats a nice R30 000.

[HungryPunter]

You are correct. I have seen some automatic trading with the EXX share, they run in 15 minute cycles. If you went long on a SSF then all you need to do is wait just before the 15 minute lapse and then buy a few shares. The automatic trading then kicks in on the 15 minute cycle kicks in making an offer to purchase which is usually higher. I tested this and it worked. I made one or two traders upset though who were doing the very same thing on the short side. This then of course becomes a bit expensive over time if you get it wrong and end up "fighting" with a pro.

[jamoo]

interesting indeed. didn't they use it to trigger stop losses as well; and then pick up shares at low prices!