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Most likely margin calls.
by jcfrei 6y ago
Most likely margin calls.
- paulgb 6y agoYep. I’ll repeat what I said in another thread: It’s really kind of ironic. People are knee-jerk blaming RH for closing margin positions because they didn’t fully understand how they work and the risks involved. Simultaneously, the same people are blaming RH for stepping in the way of what very certainly would have turned into a bad trade for a lot of people. I don’t take RH’s side but it’s hard to see a winning play for them, it’s damned-if-you-do-damned-if-you-don’t.
- Jouvence 6y agoNonsense. People are allowed to make bad trades every second of every day without protection from the platform; but now they develop a conscience and save people from themselves? If this is true, RH and other platforms pulling smiliar stunts should be sued out of existence. Might not be a bad idea to significantly increase taxation on derivatives trading too.
- paulgb 6y agoIt’s easy to develop a conscience (or the functional equivalent) when you know regulators and press have you in their sights, so yes.
- mikestew 6y agobut now they develop a conscience and save people from themselves? No, RH is saving their own asses from the poor financial decisions of their clients. They don't want to be on the hook when those accounts crater along with GME. If this is true, RH and other platforms pulling smiliar stunts should be sued out of existence. Take it up with the SEC. Oh, wait, the SEC is at least partially responsible for such rules being in place. It's a conspiracy, I tell ya!
- Alupis 6y agoThis is the same RH that extended Margin accounts to complete amateur investors with practically no vetting before-hand. People that think they'll get rich off pocket-change investments, are not in a position to understand trading on margin, nor it's risks.
- dismalpedigree 6y agoI agree. Wall street is desperate but they are not that desperate. Don’t do crazy things on margin.
- captainarab 6y agoWill repeat what I said above: This morning Robinhood conspired with Citadel to halt trading amid a short ladder sell to drive the price lower, allowing shorts to cover their losses with no competition. This is blatant market manipulation and anti competitive behavior, and must be stopped. Why does everyone insist on protecting billionaires who insist on playing the game with a different set of rules than the rest of us?
- akavi 6y ago> This morning Robinhood conspired with Citadel to halt trading Do you have evidence that happened, or are you arguing from pure cui bono circumstantiality?
- captainarab 6y agoIt's in the logs, go see for yourself? GME purchases blocked this morning on apps where Citadel is the clearing house. SOMEONE proceeds to ladder short sell GME to cause a massive price dump. Users are margin called from previously profitable positions (without being able to provide buying pressure needed to fight against a ladder short sell) Shorts are able to unethically cover your position. Read into this... it's all over the news and verifiable with documentation from various regulatory agencies.
- JohnHaugeland 6y agoEvery time someone asks you for evidence, you claim that you gave it somewhere else without linking to it, or pretend that you can psychically detect that someone is a "shill."
- captainarab 6y agoI don't know why I am being downvoted for sharing the truth...
- GavinMcG 6y agoBecause you keep saying someone did this without showing that someone to be who you're accusing. And because spamming the same comment across the thread is... spammy.
- mediaman 6y agoAgreed, almost certainly the case. However, they should have inserted some notice in the UI that this was a result of a margin call that couldn't be met, given the level of knowledge of many of their users.
- dalmo3 6y agoCould be, but the wording is super vague and obscure, though.