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Worth pointing out that nearly every major trading firm has blocked buying of Gamestop and AMC stock today. I really am hoping to see legal action against the e
by adjkant 6y ago
Worth pointing out that nearly every major trading firm has blocked buying of Gamestop and AMC stock today. I really am hoping to see legal action against the entire industry for literal stock manipulation. This isn't limiting purchasing, it's full-on stopping and only allowing selling. That's insane.
- goodluckchuck 6y agoI don't know how stocks work. Could you explain how it's possible to stop buying and allow selling? In order to execute a sell order, there would have to be a corresponding buy order? Do they do this by allowing new buy / sell orders, but only if they're at a lower price?
- maxerickson 6y agoThere are different sorts of access to the markets. Some companies literally operate the market, others have direct access to trade on that market, others sell indirect access to other people. The companies blocking buy orders are all in the indirect access business.
- cwkoss 6y agoIt is unprecedented for buying to be stopped for retail investors while still allowing buying from institutional investors.
- adjkant 6y agocwkoss more or less covered it, but they stopped buying for "retail" investors, but wall street could still buy. They basically literally said "okay enough of you normies, only professionals get to trade GME or AMC today". The unsaid part here is "and we'll probably make a ton of money during this since the retail investors were all buying". There's a rumor that Citadel doubled down on shorting the stock today and made a killing when it dropped from $450 -> under $200 today when trading was blocked. That could probably outweigh a good deal of the losses from Melvin today, though it's unclear who is still holding the bag on shorts. That's why this ban for retail traders is so crazy and blatant...