3 ms·
It 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 requir
by adrr 6y ago
It 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.