3 ms·
Depending on how new the account is, RH may not have gotten any funds from the account holder yet. But, while waiting for funds, RH will let the user buy some a
by matwood 6y ago
Depending on how new the account is, RH may not have gotten any funds from the account holder yet. But, while waiting for funds, RH will let the user buy some amount of stock (IIRC $1k worth). Is this enough on a large scale of new users to put them into a risky situation? I would hope not, but who knows how close to the capitalization they are running.
- ixwt 6y agoMaybe. Motherboard is saying that 50% of RH users owned some GME stock.
- adrr 6y agoIt doesn’t put user at risk but mean RH is drawing down on their credit line to fund the trade. The probable issues is that clearing houses have capital requirements and the higher volume of trades of high volatility stock requires RH to put more money in to ensure it has money to settle the trades. This is what Rh hit and they need to breather for trades to settle is my educated guess. Money doesn’t move instantly behind the scenes which is why you have weird things like overnight lending where the loan is just long enough for the credits to come in.