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Yep. 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 fu
by paulgb 6y ago
Yep. 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.