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Short selling. This would make NSE rather interesting.
Rank: Member Joined: 8/3/2007 Posts: 146
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Are you referring to option trading. This has been there for sometime in the mature markets. Why do we not have it here
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Rank: Elder Joined: 6/19/2008 Posts: 4,268
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If he 'Borrows' shares that you have actually paid for,now that is illegal. He is only supposed to borrow shares that he has financed you and you ahvent finished paying but when you want them back,he is supposed to give them. Mostly,customers normally sign consent when they are being financed coz in any case,you cant trade with shares that you havent paid for.
Some deals are like glass. Sometimes it's better to leave them broken than try to hurt yourself putting it back together.
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Rank: Member Joined: 9/3/2007 Posts: 3
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I for one can't wait to see the NSE introduce it. The short selling ban on wall street is temporary as they try to stabilize and formulate a plan to unclog the credit mess. Shorts also provide much needed liquidity at the bottom or when they have to cover a position when a trade doesn't work out (short squeeze).
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Rank: Elder Joined: 11/27/2007 Posts: 3,604
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yesterday president bush (read US govt) had to step in the market to 'correct things' 1st is plan to rescue banks and financial institutions by buying big share in mortgage market at a pricd tag of $500bn and $1tn A likely impossibility is always preferable to an unconvincing posibility. African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
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Rank: Member Joined: 6/25/2008 Posts: 6
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News of the proposed Government bailout led to a 'surge' in share price of most financial stocks. According to the NY times,Morgan Stanley was up 33% in the early minutes of trading. Goldman Sachs gained 27%....... Pray what effect do you think this had on short sellers?
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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Is this not what brokers do everyday in the NSE,thats how they have managed to become millionairres overnight. They are always passing losses to their clients Is there something like a moneyday "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Member Joined: 9/22/2008 Posts: 2
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IT IS POSSIBLE TO SHORT STOCKS ON THE NSE. I use a company here in the UK called Transcorp. It has a service called OnlineSoko.com that allows people to take short positions on any stock on the NSE. They also have leverage and realtime execution. Wazungu wameendelea kutushinda on our own NSE bwana!
I kinda know a lot
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Rank: Member Joined: 9/22/2008 Posts: 2
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I do not think that the availability of put options is the same as short selling. In a short sell,you should be able to hold on to your position indefinitely.
I kinda know a lot
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Rank: Member Joined: 1/9/2008 Posts: 537
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im with jammo here
short sellers play a very activ role in creating an efficient mkt,they are a necessary evil as they help market appropriately price financial products,the nse inherently only allows long trading and this leads to major flaws and overpricin of stox is the order of the day...the FSA has band short selling but there are very many other routes available to short sellers(read CFDS,Futures-short and options)...
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Rank: Member Joined: 4/8/2009 Posts: 71
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Kitanda usichokilalia huwajui kunguni wake.
All that glitters is not gold
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Rank: Member Joined: 4/8/2009 Posts: 71
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Kitanda usichokilalia huwajui kunguni wake.
All that glitters is not gold
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Rank: Elder Joined: 6/23/2009 Posts: 13,555 Location: nairobi
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short selling. its finally here. well, almost HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Very interesting debate here during pre and post GFC. Wanjikus must educate themselves as NSE gets complex. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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Even more urgent is for the NSE/CDSC/CMA to bring down the trading period from T+4 to T+1 or even day trading. This will boost liquidity and Greater price discovery! @SufficientlyP
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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Sufficiently Philanga....thropic wrote:Even more urgent is for the NSE/CDSC/CMA to bring down the trading period from T+4 to T+1 or even day trading. This will boost liquidity and Greater price discovery! I've lost good opportunities because of this. Safaricom should find its way into the NSE to 'motivate' them to expedite. Just as they did banks.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Sufficiently Philanga....thropic wrote:Even more urgent is for the NSE/CDSC/CMA to bring down the trading period from T+4 to T+1 or even day trading. This will boost liquidity and Greater price discovery! @SPT, the equity settlement cycle moved from T+4 to the current settlement cycle of T+3 in 2011. T+1 is more than welcome!! Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Pesa Nane wrote:Sufficiently Philanga....thropic wrote:Even more urgent is for the NSE/CDSC/CMA to bring down the trading period from T+4 to T+1 or even day trading. This will boost liquidity and Greater price discovery! @SPT, the equity settlement cycle moved from T+4 to the current settlement cycle of T+3 in 2011. T+1 is more than welcome!! Boss very few markets can seamlessly effect T+1 actually from the top of my head the market that is close to that is Deutshe Borse (sp) T+2 for german citizens...the volumes might not be big in our market but reduction of trading to settlement time needs a huge investment on MTFs and other of the exchange platforms.Not impossible but hard to execute... possunt quia posse videntur
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Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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Pesa Nane wrote:Sufficiently Philanga....thropic wrote:Even more urgent is for the NSE/CDSC/CMA to bring down the trading period from T+4 to T+1 or even day trading. This will boost liquidity and Greater price discovery! @SPT, the equity settlement cycle moved from T+4 to the current settlement cycle of T+3 in 2011. T+1 is more than welcome!! I called it T+4 instead of T+3 because settlement is at 4pm and NSE closes at 3pm........so ideally it's T+4. @SufficientlyP
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Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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maka wrote:Pesa Nane wrote:Sufficiently Philanga....thropic wrote:Even more urgent is for the NSE/CDSC/CMA to bring down the trading period from T+4 to T+1 or even day trading. This will boost liquidity and Greater price discovery! @SPT, the equity settlement cycle moved from T+4 to the current settlement cycle of T+3 in 2011. T+1 is more than welcome!! Boss very few markets can seamlessly effect T+1 actually from the top of my head the market that is close to that is Deutshe Borse (sp) T+2 for german citizens...the volumes might not be big in our market but reduction of trading to settlement time needs a huge investment on MTFs and other of the exchange platforms.Not impossible but hard to execute... Forget T+1, we are going for day trading like in NYSE. Okay? @SufficientlyP
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Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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Sufficiently Philanga....thropic wrote:maka wrote:Pesa Nane wrote:Sufficiently Philanga....thropic wrote:Even more urgent is for the NSE/CDSC/CMA to bring down the trading period from T+4 to T+1 or even day trading. This will boost liquidity and Greater price discovery! @SPT, the equity settlement cycle moved from T+4 to the current settlement cycle of T+3 in 2011. T+1 is more than welcome!! Boss very few markets can seamlessly effect T+1 actually from the top of my head the market that is close to that is Deutshe Borse (sp) T+2 for german citizens...the volumes might not be big in our market but reduction of trading to settlement time needs a huge investment on MTFs and other of the exchange platforms.Not impossible but hard to execute... Forget T+1, we are going for day trading like in NYSE. Okay? Also my friend @maka aka the politician,incase you have forgotten or were too young then,NSE had T+1 which we called prompt board until around 2008. Remember that? @SufficientlyP
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Wazua
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Short selling. This would make NSE rather interesting.
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