Selling shorts as high, or something like that
To play a game, you have to understand the rules. Doesn’t matter the game, really. Football, high finance; all depend on the players knowing how to win (and lose).
The last couple of days, there’s been a lot of media noise about meme stocks. I don’t know what’s going on, but it seems that there’s a whole side to the markets. Stock markets, not my local supermart. And from what I can make out, there are those with too much money who like to treat the (stock market) as a game. Their own, private casino.
So, from what I can glean from the noise, someone had a game going in “shorting”. Where you sell high and buy low. Exactly the opposite to what I had grown up understanding. No matter. It’s their game, right?
Well, a group (a rather large group) got together in one of the corners of “reddit”, and decided to have some fun of their own. You see, when you are “shorting”, you depend on certain invariates. Like that the stock will go low. What about the unforeseen? Where other forces drive the price up, and suddenly you are in for a whole bunch of financial pain?
A certain stock went from $18 to $320, almost overnight. It’s all a game, right? Well, suddenly, the ability to buy was removed from a particular “app”. But, not the ability to sell. A chance to halt the carnage. Turns out, the rule only affected players in the US. And it’s a big world out there. Again, thanks to reddit, the game continues, with many (MANY) players getting in at a really low price. Say, $320. It’s a game, right? Hang in there, because the game isn’t over.
