This board is to discuss BLTA, not shorting.... I have posed the fact that the market for BLTA is being made by shorting... not by shareholders selling. Buying pressure is being satisfied by shorting......enough on this...
I am not talking about a retail trader here the Mrkt Makers are adding liquidity by shorting what is not in their inventory, they are required to borrow shares to cover. The fact that the Mrkt. is net flat is obvious as each sell is paired with a buy. The rub here is the source of the liquidity, selling shareholders or shorting MMs.
This MM action is discussed in FINRA. The reports are "...based on the short interest on the settlement date."
Remember the borkerage firms are "SRO" self-regulatory organization they do pretty much what they like.
When you take a short position your account receives a net credit the stock is borrowed if available , if not the MM sells Naked into the Mrkt. The Mrtk is net flat but your account is short till you decide to cover. To cover you "Buy" go "Long" to flatten your position.
...,however this statement is nonsense.
" ....but anytime you sell a position from a buy position that has not settled, you create an open short position. If the securities from the purchase have not been delivered to you, then you need to borrow to cover the securities that you promised to deliver for the sell."
