Loading ...On Line Brokers are consolidating/merging together. Why? Maybe because they have become extremely profitable? But How/why?
IMO it is because those On Line Brokers still offering their “services” have been “convinced” to allow those super computers, like Blackrock’s Aladdin, access to all their trades as they happen, as well as access to all the available margin accounts, like yours, not being used.
From there it is a simple computer program to make the opposite trade that the On Line Broker’s client has made. For example, you buy 1000 shares of XYX stock and the Super Computer sells/shorts 1000 shares of the same XYZ stock, thus cancelling your purchase.
Or if XYZ stock is meant to run up, the Super computer also buys it, using your own unused margin to do so.
In this way the Super computer has absolute control of all the markets, the On Line Broker becomes extremely profitable, and all the trades are covered using your own margin account with no naked shorting.
Something to think about if you’ve been wondering why the behavior of the markets has become so bizarre and make no sense.
Are you being played? All FWIW!