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<p>[QUOTE=&quot;desertgem, post: 1121444, member: 15199&quot;]The strange thing about the article is that shorting is considered a manipulation. A market requires a buyer and a seller. When contracts are being considered it is different than retail-retail. If you have an ounce of silver ( long) and you take $38 for it, the person who buys it is now long that ounce , but you are not short as you received compensation. Future contracts are leveraged, so that only a portion is put up as collateral. If you buy a contract from someone who is selling, the contract promises to deliver the goods or cash equivalent to the goods on the expiration date. If you want, you can sell that contract for cash gains or maybe to prevent further loss.</p><p><br /></p><p>The other side. If you think silver is going down, you can borrow silver from a broker or middleman and sell it as a future contract , expecting to be able to replace it at a later date and a&nbsp; cheaper price before the contract expires. If you can, you make the difference. However,f silver goes up, and you let it ride, it may cost much more to replace the contract. A &quot;short squeeze&quot;. </p><p><br /></p><p>What is manipulation and also illegal is to sell short with out the backing goods or instruments ( like other long contracts. But this article didn&#039;t seem to differentiate between selling a regular short ( betting the market goes down), and a manipulation of selling short with out the goods.</p><p><br /></p><p>Yes any short selling will make the market for that ( such as silver, gold, GE, AAPL, etc) seem to be tending downward, but there are huge risks involved, but it is legal, and in a stalled market can be profitable. But it is fair game. Selling short something you don&#039;t have drives the market down and the seller is at little risk. JPM as the marketmaker of course has the ability ( if they wanted) to manipulate the silver market illegally, but if proven would cost them tremendously in reputation and legal damage. </p><p><br /></p><p>Sorry for the long explanation, but many ( maybe not yourself) think any short position is manipulation. Look at the &quot;BUY, BUY&quot;comments on many boards, that short players think is manipulation also <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" /></p><p><br /></p><p>Jim[/QUOTE]</p><p><br /></p>

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