Actors trick in collecting shares of a symbol
What is a fear order?
As its name suggests, an order that is used to scare shareholders to collect as many shares as possible at the price floor, even after the failure of fake support.
Usually, actors, when they intend to increase (the stock), must first collect the volume they need in the price floor so that they can control it well.
One of the routine solutions is to use the fear order
For this, the actor first collects some shares from regular sellers (to the extent that they can place orders).
Then, to collect more, he starts placing orders on the seller’s side with the main volume in the second and lower rows (up to the fifth order).
The ordinary shareholder, who is not aware of the actor’s goals, feels that the sellers of shares have increased and the share is going to fall. As a result, shareholders get scared and start selling.
In fact, by doing this, the actor has achieved what he had in mind (encouraging the shareholder to sell as much as possible).
For example, on the seller’s side, they place several orders of 50,000 or more (within the framework of the law).
In the meantime, the actor on the buyer’s side starts collecting shares with another trick
The second part
In the previous section, we said that the actor is trying to create fear and apprehension in the hearts of the shareholders with real arguments in the second and lower ranks.
At the same time, with a little negative suffering, he adds more fear to his work and gives the assurance to the shareholders that the share is really going to fall.
After the sellers appeared; This time, the actor on the buyer’s side starts collecting with different tricks
One of the common methods used by these people is to use a hidden order or a show order.
Now we have to see what the secret order is
Maybe most of the small shareholders are familiar with this type of order, but it is not used that much in their buying and selling.
The display order in each broker is placed in different parts depending on the type of platform (template) it has. By using this tool, you can display only a part of the number of shares you want, either at the time of sale or at the time of purchase.
Actually, you can display 30% of the desired volume and hide 70%.
For example, you intend to buy 10,000 shares of a company. In the purchase section; Enter the number as 10000 and in the display volume field, instead of 10000, write the number 3000.
With this, in fact, your requested volume is 10,000, but the volume that will be displayed on the board will be 3,000.
Of course, this is not possible for smaller volumes.
Now let’s go back to the main topic, that is, the collection of shares by the actor!
What is the use of this secret order for the actor?
When the retail shareholders appeared on the seller’s side, this time the actor on the buyer’s side started collecting shares using these secret (demonstration) orders so that no one would notice the suspicious orders.
Because if he puts these volumes with the real number, the buyers will be stimulated and start buying, and as a result, they will disrupt all the plans of the actor. (They cause pain).
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
Group of accountants, auditors, Tabriz
https://t.me/joinchat/BnzBsTuioTshiXBwf9bBPQ