To be honest I never believed the manipulated market mumbo jumo. I didn't see how selling large amounts of commodities at a time benefited the person selling them. But then I got to thinking, and most of you have figured this out except for dumb me, if they sell these to large brokerages that they own, the brokerage will make all efforts to sell them first. Meaning their large sale will trump little me or your sale of the same thing at the same price. So we must lower our price, but the ticker price stays the same because of the majority being at the higher price. Once the large stake finally sells off the price moves lower, then they can buy back in from all is suckers that are scrambling to sell at this low price. Once their large buy order is filled the price move back up as there are not as many sellers now. So maybe there is something to it.
So I think I finally understand market manipulation.
- Thread starter theFNG
- Start date
Jim4silver
Well-Known Member
If there is manipulation in PM's, I would think it takes place in the "paper" PM markets where they can buy/sell massive amounts without the real metal ever entering the equation.
Jim
Jim
Yes, sorry for the incompleteness of my thought. I do not know the insides of the brokerage firms. I'm assuming the can hold buys in limbo for x number of hours. So once these bank owned firms have x number of buys at a price the bank can unload their wad all at once. The little guys sell order doesn't get used until after the large bank sell order is completed. Then the little guy's sell order goes through but may be at a lower price than first initiated. The same tactic can be used to let the banks buy large amount as well. If this is right I could see how it could be abused.
Isn't this how the algo's work? But don't know if they can be used terribly well for larger, more long-term "manipulation", just the fraction of a second stuff.theFNG said:
Skyrocket said:
get it right f*ckwit
As I've stated numerous times previously, there is no long-term systematic manipulation of PMs. Like most financial markets, there's skimming from the top
Nothing wrong with skimming either - every market (not just financial) has skimmers, kudos to them for seizing the opportunity, at a cost to those slow on the uptake.Caput Lupinum said:
No different to coin flippers in the stackers market.... but apparently it would be taboo to point out that the phys PM market, which vehemently forbids any kind of "manipulators", accepts flipping with a blind-eye turned.
I guess what I'm trying to get at is, do the brokerage firms have "pools" where the bank can put an order in for a million troy ounces at price x and then the firm starts calling around to see who will sell at price x. The firm may already have some sell orders at price x that they can put in the pool. Once the firm has enough sell orders to meet the buy, is it at that point all the transactions go through as final and we see a sale of a million troy ounces? And if this is the case how long can they hold the transactions in limbo? Is the brokerage floating the money in house to clear transactions before actually hitting the big buy/sell button to show up on the exchange?