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not having a RH account, can you trade there on leverage? I imagine if a huge number of retail traders are ending up leveraged to high hell, RH may have ended u
by avs733 6y ago
not having a RH account, can you trade there on leverage? I imagine if a huge number of retail traders are ending up leveraged to high hell, RH may have ended up in an uncanny financial position because of this.
- tfehring 6y agoYou can (and people frequently do) trade options on RH, which are inherently leveraged. But RH is just a broker - it’s not on the other side of the trades itself.
- avs733 6y agoah okay. I wasn't sure what services RH offered and didn't. The amount of meme-ery around them had me wondering if they had decided to go beyond being a broker to try and extract more money from users like they do by selling access to their order flow.
- wfhpw 6y agoThen they can enact a moritorium on leverage buys to protect themselves. They have no liability for clients who are buying without leverage.
- dv_dt 6y agoI think the biggest thing RH offered that they may have been justified in curtailing is fractional stock buys and buys on margin. But to stop trading on buys outright is very strange.