The BBC have been very good at telling the world about short-selling well here's another one for you.
A bear squeeze.
Now this is where you sell stock you haven't got to somebody but eventually you have to buy it back to cover your short position. Now when you go to buy back there is now a seller, only they know that you are forced buyer, so they will say want a price of GBP1, then they know that you are desperate to cover so they then increase the price to GBP2, and if you are having to pay GBP2 then you really must be desperate so hey lets try GBP3, and so it goes on.
You are so finished, all those gains you made on the way down gone, just like that.
So, commentators, lets have the classic bear sqeeze explained, because the bankers have got the speculators over a barrel, or the short and curlies if you like. They will be, as Alastair Darling will say, well 'pissed off'.
Come on give us another scoop, or are there now going to be complaints that they used the options market to purchase call options to cover there short positions and now they are making even more money on the way up. What did they say about Mohammed Ali, floats like a butterfly stings like a bee. Study the options market then you may just understand.
Butterflys
The BBC have been very good at telling the world about short-selling well here's another one for you.
A bear squeeze.
Now this is where you sell stock you haven't got to somebody but eventually you have to buy it back to cover your short position. Now when you go to buy back there is now a seller, only they know that you are forced buyer, so they will say want a price of GBP1, then they know that you are desperate to cover so they then increase the price to GBP2, and if you are having to pay GBP2 then you really must be desperate so hey lets try GBP3, and so it goes on.
You are so finished, all those gains you made on the way down gone, just like that.
So, commentators, lets have the classic bear sqeeze explained, because the bankers have got the speculators over a barrel, or the short and curlies if you like. They will be, as Alastair Darling will say, well 'pissed off'.
Come on give us another scoop, or are there now going to be complaints that they used the options market to purchase call options to cover there short positions and now they are making even more money on the way up. What did they say about Mohammed Ali, floats like a butterfly stings like a bee. Study the options market then you may just understand.