Thursday, 18 October 2012

Just How The Cost Of Silver Is Continually Controlled

By Max Wool


These days the newest weapon to enter the market manipulation scene is HFT or High Frequency Trading. The current computers, programs and technology let HFT to be extremely effective at fixing and controlling the cost in either the gold or silver markets. It functions like this, generating sell purchases (in the millions of ounces) by software programs that then immediately stop each and every market purchase. These requests are placed and then stopped so quickly they look similar to any other reputable market order. But they are really reflections in the mirror of an actual trade, or a spoof. It's so easy, that the cancellations go unnoticed through the marketplaces.

They have the unique capability to be put then cancelled within fractions of a second. As soon as this huge volume of purchases floods the market, it's easily observed. It then frightens as well as tricks the actual markets into a panic, hence witnessing large positions marketed quickly. Certainly this is all a deception to terrify others, but it surely works. Because the most of the authentic sell purchases are never really executed, those behind exploiting these trades are never in a volatile situation.

Utilizing High Frequency Trading techniques can actually force charges to decrease by moving little to no physical volume. Nevertheless when the charges drop, marketplaces start a selling frenzy by sheer market worry automatically. This action will cause more value decline in the silver markets. From this point, you can see purchase orders start to come back in. First in line will be from the commercials themselves who already predicted and made the cost falls.

Bottom-line, High Frequency Trading is the latest strategy being used nowadays for shorting the valuable metal markets. It is significant to understand that after the cost declines, is when all the "actual selling" takes place, followed by the commercial buying. Numerous traders believe massive selling is what makes the costs decrease, but in fact this is not true. Because massive selling just comes once the cost has already been forced straight down, which is the sole aim used by HFT in silver.

Truth is that silver manipulation has been around in effect for a long time. You have to view this cold and hard. Due to these silver cost scams the values are lower than they must be making this a great buying chance. At some point the manipulation may end, this is assured as all manipulations all through history have ended.




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