Cox on morality in trading naked shortsMorality comes into question in this interview and when Cox is mentioned in the same sentence as trading naked one has to keep a wide stand on the opinions expressed herein.
This reporter from CNBC says it all in this pic which seems to show her in total disgust of the position posited on naked trading of stocks.
However trading naked stocks is not necessarily applicable to currencies.
A currency is neither long nor short and a position on a currency can be naked or without hedge.....click on image to watch the Cox Morality Naked Short Trading Video.
What will you see ?
Cox, " The goal here is to give investors confidence in the markets".
Cox, " where people don't even borrow the shares that they are supposed to deliver".
I personally don't get this point....care to enlighten me? please comment.
He's talking about illegal short selling of stocks and other financial instruments.
Meanwhile she, the interviewer seems totally disgusted. NAKED WHAT. Mister Cox.....????
Cox, " Naked short selling is very different than short selling in general...."
What I personally hear him saying here is that a short sell is generally an hedge on a long position and to short sell naked is generally a very high risk move which holds the potential for massive losses.
If so then I am on side with his morality issue towards naked short selling where the financial advisor or trader is holding, and gambling the funds of clients. ie. The pension dollars of your mother or grandmother. Gambling with fiduciary dollars is a criminal act and if it isn't then it should be.
However taking the right of a retail trader or a trader who trades his own funds away from him or her is equally an illegal act. IMO......
Morality trading naked shorts here is equal to knowing who'se money or financial security the trader is trading with.
Fiduciary may be the word to focus on here. However I don't recall the word being part of the interview.
Naked short selling at the time of the interview was not illegal, just very immoral....
The movie Shock Stock supposedly goes into some of the issues that arise when traders decide to drive prices to points where they bust out accounts that are near margin. Driving stocks well beyond their fundamental value is part of this game....
Do you still want to play ?
Do you still want to be a trader ?
Do you want to see some Ahole gamble with your mothers' pension ?
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