Zion Oil & Gas Inc (ZNOG)

[DragonBear]

The Volume and short volume are limited-meaningless

is daily short volume.

Trading example:

I submit an Ask to my broker for 1000 ZNOG shares I own at 0.688. The broker can't fill the order internally using their other clients. The order gets tossed out to the MM or ECN.

With a few seconds you submit a Buy for 500 shares at the same price. Again, your broker has no internal customers wishing to sell at that price. Out it goes to the MM.

Because the MM does not “own” the securities involved in this transaction, the MM computer sells Short 500 shares to you. It is recorded as such on the tape, and appears in the daily Short report. Within seconds, the MM computer "covers" by buying 500 shares from my order. The net result is one Long selling to another, with 500 shares appearing in the daily short report. That's just the way it's handled via Rule 200(g). These trades are referred to as "riskless" trades for the MM. They have no shares of their own involved. Instead they Short, and immediately cover as fast as their computers can handle it. Then they collect their contracted commissions from each side of the trade.

The only thing the Short to total volume trading shows, is how many trades did the Brokers put together, without the need of going externally to a MM for a match.