One method of rigging the price of Silver, is through High Frequency Trading (HFT).
This is the placing of sell orders in great quantities by computer programs.
These appear to be legitimate orders, but are mostly "Spoofs".
The orders are entered and cancelled immediately (In the Fractions of a second). When the sell order first appears, it spooks others into selling as they give the appearance of great selling about to hit the market.
Instead, it’s all a bluff, intended to only scare others into selling, as the vast majority of these original sell orders are never executed, nor were they ever intended to be executed. They were designed for one purpose only - To scare others into selling.
Source: http://moneymorning.com/2012/04/06/the-who-how-and-why-behind-silver-price-manipulation/
The 2nd method used to manipulate the price of Silver is through the selling of 'Naked' Silver Shorts.
The orders are entered and cancelled immediately (In the Fractions of a second). When the sell order first appears, it spooks others into selling as they give the appearance of great selling about to hit the market.
Instead, it’s all a bluff, intended to only scare others into selling, as the vast majority of these original sell orders are never executed, nor were they ever intended to be executed. They were designed for one purpose only - To scare others into selling.
Source: http://moneymorning.com/2012/04/06/the-who-how-and-why-behind-silver-price-manipulation/
The 2nd method used to manipulate the price of Silver is through the selling of 'Naked' Silver Shorts.
No comments:
Post a Comment