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Showing posts from January, 2010

It is not your game

There is a Chinese idiom stating that the public cannot do what the government can do (只許州官放火, 不許百姓點燈). This happens in the HK warrant market obviously.

男子操控窩輪判社會服務令
Here are his steps reported:

1. Issue a big SELL order at price X
2. Issue a small BUY order at price X-n
3. Cancel the big SELL order
4. Issue a big SELL order at price X+m
5. Cancel the small BUY order
6. Issue a small BUY order at price X+m-p

As the result, the price of the warrant rises from 5.5 times to 39.9 times.

Is it a secret? I don't think so, especially for those professional investors and financial institutes.