RE: Ban shorting.8 Mar 2019 09:26
Basically, if you are shorting shares you are, in effect, selling them first, with the tacit agreement you will be buying them from your broker at a later date. So, when IQE spikes at 99p as a trader I might think, "Hey, this looks likely to retrace to 85p. Let's go for it" That's good business for a short trade at 14p per share minus trading fees. IQE is seen as a good day trading stock because of its Yo Yo-like movements, volume and volatility. I believe IQE will eventually spike and sustain itself at a higher price so shorters have to make very sure they get out before that happens otherwise they lose. In the US markets, a common shorting ground is pharmaceuticals based on FDA reports of drugs undergoing approval in phases. Most drugs fail, and shorts are placed on the day negative results are reported.