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My theory is that no market makers want to buy the orders Robinhood is selling anymore.
by ipnon 6y ago
My theory is that no market makers want to buy the orders Robinhood is selling anymore.
- gruez 6y agoYeah the whole point of selling your orders is that retail traders are mostly "uninformed" and likely won't move the market. WSB basically showed that's not always the case.
- neom 6y agoNot that I agree with it, but one of the talking heads on Fox Business was blabbering on about how retails investors should not be allowed to move the market because they're are unlicensed and don't understand the implications of their actions, hah.
- HenryKissinger 6y agoIt would not be difficult, or unconstitutional, for Congress to pass a law restricting the trades that non-accredited investors are allowed to make.
- zaroth 6y agoThey do that already. The "public" markets are the stocks that non-accredited investors are allowed to trade.
- jayd16 6y agoI think there's something to that though. Whats to stop big firms from posing as many retail investors if there's no regulation against that class of investor manipulating the market? I don't have the answer but its something to think about.
- avereveard 6y agomany small coordinated investment to hide a large movement are already illegal
- jayd16 6y agoYes, but the licensing makes it easier for regulators to regulate, no? Why need a license for anything if they have no regulatory advantage?
- crucialfelix 6y agoI'm not sure about that. Higher end trading platforms have automated buy strategies that spread the bids across time so as not to cause the market to spike.
- belltaco 6y agoThat makes no sense though. It's like arguing what if someone uses a car to commit a murder while pretending to drive it normally. The answer is the same in both cases, law enforcement needs to investigate and catch it. If they can't, too bad, there are a lot of undetected crimes in the world, doesn't mean that we have to prohibit normal activities to stop them at any cost.
- jayd16 6y agoI think its more like suggesting private drivers might need a driver license as well even if most drivers plan to drive legally. Are you suggesting the licensing and regulation does nothing? Do you think the big firms should be treated the same way as retail investors because crimes will be caught either way? I'm in no way a proponent of big firms but I think its important to think about what kind of under regulated trades are happening.
- agumonkey 6y agowe only allow mindful criminals, not newbs
- runawaybottle 6y agoSo you’re saying the house caught you catching cards? :p