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If the stocks (or wacky option/derivative trade) still have value, then yeah, there's no problem. The problem is when people make a bet that doesn't work out.
by jbooth 9y ago
If the stocks (or wacky option/derivative trade) still have value, then yeah, there's no problem.
The problem is when people make a bet that doesn't work out. There are a lot of exotic trades that can clean you out completely in an instant if you bet wrong.
- jfim 9y agoIt doesn't even need exotic trades. If you're doing margin trading on a stock for which there is a sudden dip in stock price (as in previous flash crashes), then there will be a margin call and from the customer's perspective, all their money and shares will evaporate. I wonder how Robinhood will handle it when it happens.