Shorting and Indian capital markets
zerodha.com
Shorting and Indian capital markets
1–10 of 132 posts
Re: Shorting and Indian capital markets
#2Nooooooooooooooo!!!!!!!!!!!!!!!!!
Re: Shorting and Indian capital markets
#3How does this article with 1 comment as of this writing land at #1 on HN?
Re: Shorting and Indian capital markets
#4Zerodha (top Indian broker) posted an article earlier which explained why the Indian brokerage industry has very few avenues to make revenue: https://zerodha.com/z-connect/rainmatter/the-race-to-zero-ca...
The lack of any mechanism for payment for order flow is quite interesting - how do market makers get incentivized to provide liquidity in such situations? Or asked another way, are American market makers being subsidized by retail traders?
Re: Shorting and Indian capital markets
#5How does this article with 1 comment as of this writing land at #1 on HN?
By acquiring 33 votes in 33 minutes. And shorting is kinda hot right now.
Re: Shorting and Indian capital markets
#6How does this article with 1 comment as of this writing land at #1 on HN?
The article itself is well-written (contrasting the Indian stock markets and how it benefits from being younger than their US counterpart which is beholden to incumbents lobbying for the status-quo and a century old legacy system with enough loopholes than SEC can plug). It could be that no one really has strong opinions one way or the other to what's being said (expected since Nithin Kamath, who wrote the article, is level-headed and pragmatic, as usual) to comment.
Re: Shorting and Indian capital markets
#7How does this article with 1 comment as of this writing land at #1 on HN?
Not having comments is irrelevant for the ranking.
Re: Shorting and Indian capital markets
#8A lot of movement in GME was driven by call options, which is generally available in all markets. However, absence of overnight short positions would definitely diminish the trigger GME needed to get short squeezed and become volatile in the first place.
Re: Shorting and Indian capital markets
#9Zerodha (top Indian broker) posted an article earlier which explained why the Indian brokerage industry has very few avenues to make revenue: https://zerodha.com/z-connect/rainmatter/the-race-to-zero-ca... The lack of any mechanism for payment for order flow is quite interesting - how do market makers get incentivized to provide liquidity in such situations? Or asked another way, are American market makers being subs…
> how do market makers get incentivized to provide liquidity in such situations?
Buy low, sell high.
PS: By the way, I'm not sure I understand the question. Market makers are the ones who pay for the order flow.
Re: Shorting and Indian capital markets
#10>>"In some of these stocks, the total quantity of stocks shorted (stocks borrowed and sold + using derivatives) is much more than the free float or the total number of shares held publicly. "
So, they short more stocks that exist. OK, I will not ask why this is allowed, but how is this done?