CCC 0.00% 0.1¢ continental coal limited

"What I said there are brokers that offer shorting on the stock...

  1. 5,656 Posts.
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    "What I said there are brokers that offer shorting on the stock using CFD's and if someone didnt have any shares they could actually put sell orders on using CFD's to make the share price look very heavy."

    Short selling has to be covered.

    RG 196.3 Covered short selling is permitted under the Corporations Act. This recognises covered short selling as a legitimate mechanism for price discovery and liquidity, subject to disclosure and subject to intervention by ASIC in exceptional cases.

    Which ARE reported.

    What you seem to be talking about is naked short selling.

    RG 196.4 Generally, the practice of short selling securities without a securities lending arrangement is known as ‘naked short selling’

    RG 196.5 Under the Corporations Act, a person must not sell a section 1020B product in Australia if, at the time of sale, the person does not have a presently exercisable and unconditional right to vest the product in the buyer: s1020B.

    What scenario 1 has to do with short selling has baffled me.
    What you seem to be talking about is a wash trades.

    This one in particular
    'Layering' or 'spoofing' - submitting a genuine order on one side of the book and multiple orders at different prices on the other side of the book to give the impression of substantial supply/demand, with a view to sucking in other orders to hit the genuine order. After the genuine order trades, the multiple orders on the other side are rapidly withdrawn.

    Which has nothing to do with shorting.

 
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