Under this theory, you might assume that since short volume is 90% that 90% of the time, market makers borrowed shares. You should see days where there were plenty of sellers, so, market makers had no need to borrow shares. Those days there would be 0% short volume. Are there many or any days with 0% short volume. Every day there is a battle between buyers and sellers. Buyers win some days. Sellers win some days. - underdog150
All one has to do is review the short volume for the period in question to answer the question of "Are there any or many days with 0% short volume?"
And a little known loophole in the "book entry" marker making system, if a market maker deposits an IOU in a retail trader's account, and that retail trader is able to close out his/her position through a supposed sell, what shares is the market maker selling to close out the open order?
Is he borrowing them to close out the order? Remember, the shares were't there in the first place.
An intra-market maker "book entry" does not constitute a locate. Or does it?
Now, imagine another retail buyer getting filled by the same market maker who handled closing out the sellers open order. All that market maker needs to do is take the commission from both traders, and move the "book entry" from one account to the next. Again, never having to deliver shares or locate shares to deliver. Market maker in all essence, is selling/shorting to himself.
At the end of the day, the market maker is hopeful that the "hot potato" will eventually drop. Music to their ears when those left holding the potato write down their shares as worthless.
The short and distort is tireless when it comes to reducing risk and/or closing out open short positions.
Tic Toc
Please research all stocks before investing. My posts are my opinions and are not buy or sell recommendations. Always force abusive short sellers to cover above what you paid. Build wealth for fellow iHub'ers!
