3 ms·
> How is that not manipulating the market? Nobody said it isn't. In fact, that's the whole point: manipulate people to chill out, take a few minutes to think,
by cthor 7y ago
> How is that not manipulating the market?
Nobody said it isn't. In fact, that's the whole point: manipulate people to chill out, take a few minutes to think, and then get back to it.
- nimbius 7y agoso isnt it bad to manipulate a free market? I know China gets beaten up about it all the time.
- sp332 7y agoStock exchanges are heavily regulated. That's why trades can be made so quickly.
- thawaway1837 7y agoThe market exists through manipulation (regulation). There is no such thing as a free market that erupts spontaneously. Despite the rhetoric from certain circles, “free” markets are actually highly managed and regulated entities. There’s a reason why places with the best (largely defined as consistent) regulations, and greatest stability are also financial centres. If markets erupted without any regulatory framework then their quality would be highly correlated with the level of anarchy in a place. Whereas the reality is almost the opposite.
- SpicyLemonZest 7y agoWhen knowledgeable people talk about "market manipulation", they're generally talking about secret market manipulation, fiddling with the market structure in private to extract value from it. Wash trading is a good explanatory example; you're tricking people into thinking market volume is higher than it actually is, to get them to do things they wouldn't do if they knew the real story. Setting clear rules known in advance is "manipulation" by some definitions, but it's not really the same thing. There are some people who beat up China for simply setting rules in the market, and they're definitely wrong to do so, although you shouldn't confuse this with people saying the specific rules China sets are bad.