Listen to a Business English Dialogue About Hammering the market
Julia: Hi Scott, have you heard the term “hammering the market” in finance?
Scott: Yes, Julia. It’s when traders aggressively buy or sell large volumes of stocks or other securities in a short period, causing significant price movements.
Julia: Right. So, it’s like making a big impact on the market with rapid and substantial trades?
Scott: Exactly. It can be done to exploit short-term price movements for profit or to influence market sentiment.
Julia: How do traders “hammer the market”?
Scott: Traders may use various strategies, such as algorithmic trading or executing large block trades, to quickly buy or sell securities and move prices in their favor.
Julia: Are there risks associated with hammering the market?
Scott: Yes, Julia. While hammering the market can result in quick profits, it can also lead to increased volatility and potential losses, especially if the market moves against the trader’s position.
Julia: Can individuals and institutions both engage in hammering the market?
Scott: Yes, Julia. Both individual traders and large institutional investors can participate in hammering the market, although institutions often have more resources and influence to execute large trades.
Julia: How do regulators view hammering the market?
Scott: Regulators closely monitor market activity and may intervene if they suspect manipulation or abusive trading practices that harm market integrity.
Julia: Is hammering the market considered illegal?
Scott: It depends, Julia. While aggressive trading strategies are not necessarily illegal, intentionally manipulating prices or spreading false information to influence the market is prohibited.
Julia: Thanks for explaining, Scott. I have a better understanding of what “hammering the market” means now.
Scott: No problem, Julia. If you have any more questions about finance or business, feel free to ask anytime.