Former Wall Street broker and financial analyst Max Keiser explained how markets are manipulated on an appearance on the Alex Jones Show. Here is a summary of Keiser's explanation:
1. Market participants place what are known as "wash trades." These are trades to buy and sell at a given price. For instance, if a stock is trading at $100, a market participant who wishes for the price to go to $102 may place an order to buy and an order to sell at $102. As orders are placed at those levels, prices will tend to go there.
2. Then, in the options market, traders can buy strategies that will profit from the move that is being engineered by the wash trade.
Keiser notes this process is illegal, but with trades being executed at the speed of light and with massive amounts of such fraud now regularly occurring, regulators are a bit limited in what they can do and perhaps what they want to do.
Max Keiser: [ Ссылка ]
The Alex Jones Show: [ Ссылка ]
Learn Trading: [ Ссылка ]
