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Well it’s a new day and although this will be unpopular I personally don’t want a late Friday sale rns ! First thing would be awesome and I’d take the day off to concentrate on the fun :) but I do not want to be sitting over the weekend on a proposed deal that will be dissected over the weekend ! I want the rns to drop early, de leverage a % and then sit tight for the final FULL. Sale price with a cheesy grin a mile wide :) Obviously I’d take the deal anytime anyhow but if I could choose I’d prefer early/mid morning today or first thing Monday !! Gla
Jambo
Just spotted your reply - many thanx.
Will need to study and google more to understand it more.
Initially over my head - will try to catch up.
Cheers
JT
@JTMAC
Forward selling ( by the MM ) is not necessary them going short. Forward selling is usually applied to selling with a longer period between trade date and standard settlement date for the respective market. Forward selling is common when warrants are being converted to ordinary shares. Common assumption is when the RNS states converted shares will be listed on a future date is they cannot be sold until that date.
Wrong because a trade can be created in advance by the company broker to deliver the shares to the holder of the
( converted wts) so even if the shareholders had no current position, the fact they have in effect a forward date buy ( the conversion delivery ) on their trading account means they can instruct a sale, just as long as the settlement date if the sale is agreed to be no earlier than the conversion delivery.
If the MM borrows stock to settle the MMs sale they need to put up collateral against the value of the stock they borrowed plus a margin. Collateral can be cash and or stock ( from a long position in another stock ). The short position by itself is treated as cash positive just as the long position is cash negative.
Once you start to look at the collateral side then it gets more complicated.
For example in the UK Euroclear ( CREST ) clearing system divisions of big banks including MMs can use collateral trade types DBV ( delivery by values ). These are cash only trades which one side will pay the other cash ( usually tens or £ hundreds of millions). The trade is unwound automatically the next day at a slightly higher value to reflect the one night loan. Interest on the loan is defined by the class of shares put up as collateral. Ie FTSE 100
The DBV trade in itself when matched up in Crest can list up to 100 stocks that are automatically allocated to the trade as the collateral.
Re the question on MMS trading with each other, that is pretty difficult to determine and usually takes place in the auctions.
Thanks Worrier.
GAZA It is: A Beginner's Guide to the Stock Market: Everything You Need to Start Making Money Today
by Matthew R. Kratter
Which book was that Worrier if you don't mind me asking?
Thanks.
Ramp, that's exactly how I discovered EUA. I'm a new investor, read a book about buying shares when the price is on the way up. Saw EUA in the daily LSE chart at the end of the day as one of the top performers (about June 2020 I think), and been here ever since, topping up every now and again to get my average down.
It is a great time to top-up and add to your golden tickets.
Just found some wonga down the back of a sofa (yet again) and added 2,691 golden tickets to my princely assemblage.
'The stock market is a device to transfer wealth between the impatient and the patient' - don't forget old Warren's wise words.
Now back to watching paint dry :)
GLA.
Jambo813
I was aware they are able to ""Hold"" stock as you explain.
Please elaborate - when the stock is forward sold - then the desk is ""Short"" on stock - so they pay intrest - correct?
genuine question - I get it's risky for the Mm's to forward sell......
Cheers
JT and his lover - Septic lil
Morning Jambo, out of interest what % of a days trades are MM's buying and selling to each other in your experience.
Just trying to get a handle on how many are 'true trades'
Watching the trades there are some that come in at what the ask and bid are (real trades), lots of small trades at full ask and bid (I believe them to be MM manipulation) and then lots in between that to me look like the MM's selling/buying to one another.
GLA
Ex MM and they do hold stock. Depends on what their risk managers allow them and don’t forget they get charged interest to the trading book as the cost to the company for the capital they are using up. Credited interest when they are borrowing to meet buy orders and going temporarily short.
1144523, static share price stops traders so mm’s don’t make their bit from trades, correct.
By making eua interesting to trade it’ll attract a whole load of other investors, garner more interest in EUA, and even though they’ll make money from the trades the share price would start to rocket (look at December when we went from where we are now to 40s because of the intense buying pressure)
Mm’s want to keep a lid on it, and by doing so they can keep the price low (this means if a sale comes in for ££ they make a huge huge amount from the difference in share price from say 28p to £1 compared to 44p to £1)
It also allows them to bore investors off and force them to sell at a price WELL below what EUA should be trading at. On the plus side we can also buy cheap stock.. but Most people have done their research and will have loaded up by now, especially on the unjust drop last month. Increasing the volatility a bit in the day will attract morning investors but they simply don’t want it and I think for the above reasons. Why else would they not want this tradable, as you rightly say, they’d make a hell of money from the trades instead of this low volume lul
When they’re forced to, they’ll have to let this go. Technicals on the chart show the compass points north. Maybe they’re letting the impatient lot off at this stop before next leg up
Why would mm want a static share price. Surely volatility increases their trade. If it’s manipulated it must be someone with enough shares to dampen any excitement so to manage their own agenda
Of accumulating cheaply.
I thought MMs were not allowed to hold stock , that would be vertical playing field not just uneven.
Mm’s will make a fortune on their held stock on EUA imo
Just imagine how many cheap shares they’ve fleeced pi’s of in the two weeks in January when it went to 22p or so (STOP LOSSES!)
I’m also of the opinion mm’s do not and have not for months want this stock traded. They make it so boring so we don’t even have ups and downs bar the odd rally every 3 weeks. The slow bleed only works for so long but won’t snatch shares from sticky honey glazed hands like ours!
They’ll profit a shed load from a monster sale
I don’t think I’ve ever seen such a flat calm. Something brewing. Hopefully not an iceberg ;-)
that as long as it does not rise the MM's don't seem to care about lack of volume ??? almost like they are hoarding their tickets ready to ten bag off them ?????? :)