Short selling is to regular selling
Margin Buying is to buying
People essentially sell what they can borrow and don’t own (short selling), or buy with money they borrow and don’t have (margin buying).
Thus, selling things you never borrowed (Naked Shorting). Is like buying things without any money (naked buying).
In Japan they call Naked Shorting ‘Sky Selling’ because you’re selling something that doesn’t exist, space, vapid, void, emptiness, and infinite.
Buying without having a credit toll or anything accrue on the account ledger due to a system of delays is akin to buying things without ever spending any money.
Naked short selling and naked buying is an afront to the Market
Is the universe priced in yet? or are we still trying to ‘find value’ in ‘price discovery’?
And the idea of market makers providing liquidity through privileges of selling short the securities not yet bought. That’s just a sham. The only liquidity a market maker should care about is being cash flow positive with real cash. What happens if there is no cash liquidity in a brokerage, a market maker, or a bank? Shit goes south fast.
So providing liquidity in the trade volume only results in fake numbers and fake sales. The only fake numbers you want realized to be real is positive cash money.
You could argue that the people and institutions that facilitate naked shorting are also practicing naked buying as well. Seeing as real money doesn’t transfer immediately and also has to settle and has to be delivered as well.
There are Failures to Deliver.
There are Failures to Receive.
These applies for the delivery of a product, service, or cash as well.
As an aside note,
The Idea of a money printer is equivocal to that of Naked Buying. So I do question the Modern Monetary Cultists.
I don’t mind if we print money to maintain money supply and raise it to allow people to have more access to it as population grows.
But Quadrupling the money supply? Idk man, Sounds like witch craft.
And here is a note on liquidity providers
This is a conversation between online strangers and I’ve amended and abridged it for viewing pleasure;
In the stock market where it is a market maker’s responsibility to provide liquidity, by executing buys/sells without a match on the other side, wouldn’t this be artificial liquidity though?-Sauce
And wouldn’t this artificial liquidity lead to an altered share price than that would be found via natural supply and demand?
Lastly, Shouldn’t it be up to the investor to then invest in true liquid stocks, rather than artificially liquid stocks from the market maker?
Shouldn’t huge movements of capital into/out of a stock impact the price? How is that not manipulating the price of a security? I understand that they want to make huge trades without impacting price, but doesn’t that go against supply/demand?
So basically my trades never impact price, but institutions’ trades do. but only when they want it to.
Making shares available when they are not actually available forms the basis for the price manipulation that’s happening on the markets. It’s pure crime.
In my Orderbook, a market dries up when nobody wants to sell at current market prices, end of story. When you really want something, you need to raise your offer until you find a willing seller, and vice versa (a willing buyer).
If would certainly seem that putting something up for sale that is not available, “selling” it to someone and taking their money, but not actually producing the purchased product would directly manipulate the value of the item, based on fundamental principles of supply and demand.
Yea, what a doozy, let that one sit in fer ya. Some Art-if-fictious Liquid-it-tyyy. Art by a Con Artist, I say.
Yea, So Naked Selling or Naked Buying is bad business. It’s basically stealing.
If I sell something I don’t have, and get paid but never give you the thing, it’s a cash advance scam. Theft.
If I buy something but never pay, then I stole it, it’s theft.
And Also, Artificial Liquidity is just Market Manipulation.
As more and more people wake up to the fact that the markets are rigged and the the FED bashing is growing louder and louder, I’ll have to find a new job.
I feel like it wouldn’t be as fun no longer being the crazy guy spouting nonsense in my small corner of the world. Especially when people learn and realize, that hey, maybe he’s not so crazy after all.
Whatever, I’ll go feed pigeons or kick rocks or some shit. Most people want to homestead and crochet like a peasant, maybe I’ll try my hand at those and retire? lmao.
*Not Valid Financial, Legal, Life, or Any Advice