Short-selling Part 4

By: DanielXX Derivatives, and warrants in particular, have become very popular instruments on the SGX over the past few years, and the SGX must be given credit for its successful promotion of this instrument the second time round (the first attempt in the 90s fizzled out). As more and more issuers enter as market-makers, there is now a critical mass and warrants form a substantial part of … [Read more...]

Short-selling Part 3

By: DanielXX The second main instrument used for short-selling individual stocks is the CFD, short for Contract For Difference. The name is not very illuminating, but suffice to say that it acts like a form of stock futures where the gain or loss is the difference between the opening price and closing price of the underlying stock multiplied by number of shares specified. Like futures, it is a … [Read more...]

Enjoying windfalls from punting

By: PanzerGrenadier The picture you see above is the site of the future Integrated Resort (also known as: the Casino@Sentosa) near the northern shores of Sentosa formerly known as Pulau Blakan Mati. The thin line between investing and speculating in stocks and shares The stock market is a place where money can be made and lost and both at the same time as every transaction is a match at the … [Read more...]

Short-selling Part 2

By: DanielXX Continue from Short-selling Part 1 We start with the SBL account, an abbreviation for Shares Borrowing and Lending. This is the traditional method for short-selling, whereby one borrows from a pool of ready-for-lending securities in order to sell short. This enables the trader to hold longer than if he were doing "naked" short-selling, where he basically just sells the stock … [Read more...]

Short-selling Part 1

By: DanielXX Long-time readers of my blog would know that I have so far been quite resistant to trying to profit from short-selling. But not for moral reasons, for really there is nothing immoral about taking the view that markets will go down and hence backing up that view by selling first before buying up (covering) later. What is immoral is the additional measures the unscrupulous … [Read more...]

Short-selling Part 1

By: DanielXX Long-time readers of my blog would know that I have so far been quite resistant to trying to profit from short-selling. But not for moral reasons, for really there is nothing immoral about taking the view that markets will go down and hence backing up that view by selling first before buying up (covering) later. What is immoral is the additional measures the unscrupulous … [Read more...]