Anonymous
Anonymous asked in Business & FinanceInvesting · 4 weeks ago

do they "pump and dump" in the futures markets as well? can they buy, drive up the futures price and then sell again by a.m.?

stock futures are up 240 now on the DOW....how likely this can reverse to 300 negative or so by a.m.?

2 Answers

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  • 4 weeks ago

    <<<do they "pump and dump" in the futures markets as well?>>>

    I doubt it. Pump and dump works best on a security with a low price and low liquidity. Futures markets are almost exclusively on high volume securities.

    Add to that the fact that pump and dump is illegal and it is almost certain that trying to pump and dump futures would almost certainly be noticed.

    <<<can they buy, drive up the futures price and then sell again by a.m.?>>>

    It is theoretically possible, but the amount of capital required to buy enough futures contracts to drive up prices would be prohibitive.

    <<<stock futures are up 240 now on the DOW....how likely this can reverse to 300 negative or so by a.m.?>>>

    Barring any major news announcement it would be very unlikely.

  • Judy
    Lv 7
    4 weeks ago

    Who is 'they'?  Might  reverse to 300 negative or so by a.m. but that's not pump and dump.

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