3 ms·

So currently some hedge Fonds are bleeding money, true? So who is the counter party who currently gets this money (can't be the community since they hold)

edgyquant 6y ago
They’re bleeding because others are holding, no? There are premiums at play.
- andi999 6y ago
  That would be virtual bleeding (which could be the case though), but if you bleed real money then somebody else has to receive it. If you hold a stock money doesn't come to you (except as annual profit distribution but that is a different issue). I read the fees for borrowing a stock for shorting are coupled to the market price (not sure). So if you fund lost a few billion real money (so they have to sell other assets to pay that) then somebody else has to get these billions now.
  - robinei 6y ago
    The stocks they are borrowing for their shorts have really high interest now. They are bleeding money just paying interest. And now that goes for a couple of hundred percent of the stock float.
    - andi999 6y ago
      Who specifically get this interest now? Maybe it is not know, but maybe somebody knows here?
      - splistud 6y ago
        Depends on the broker. They publish their fees and the amount of those fees they share with the stock owner. Not all have loan fee share programs mind you.
  - IG_Semmelweiss 6y ago
    Correct. Unsung winners are counterparties to hedgefunds in trouble The troubled melvins and maples are exiting succesful positions to be liquid and cover for the black hole that is GME.
    - andi999 6y ago
      So that's basically wall street winning again (different house number though..)
ThomPete 6y ago
margin calls
pjc50 6y ago
Whoever has been selling into the funds which needed to cover shorts has been doing very well. As have those who were lending out the shares for the shorting. Probably some of the early WSB pumpers have quietly sold while yelling at the community to hold, too. However, we should always be careful with unrealized gains and losses. Those aren't confirmed until people exit their positions.

edgyquant 6y ago

They’re bleeding because others are holding, no? There are premiums at play.

andi999 6y ago
That would be virtual bleeding (which could be the case though), but if you bleed real money then somebody else has to receive it. If you hold a stock money doesn't come to you (except as annual profit distribution but that is a different issue). I read the fees for borrowing a stock for shorting are coupled to the market price (not sure). So if you fund lost a few billion real money (so they have to sell other assets to pay that) then somebody else has to get these billions now.
- robinei 6y ago
  The stocks they are borrowing for their shorts have really high interest now. They are bleeding money just paying interest. And now that goes for a couple of hundred percent of the stock float.
  - andi999 6y ago
    Who specifically get this interest now? Maybe it is not know, but maybe somebody knows here?
    - splistud 6y ago
      Depends on the broker. They publish their fees and the amount of those fees they share with the stock owner. Not all have loan fee share programs mind you.
- IG_Semmelweiss 6y ago
  Correct. Unsung winners are counterparties to hedgefunds in trouble The troubled melvins and maples are exiting succesful positions to be liquid and cover for the black hole that is GME.
  - andi999 6y ago
    So that's basically wall street winning again (different house number though..)

ThomPete 6y ago

margin calls

pjc50 6y ago

Whoever has been selling into the funds which needed to cover shorts has been doing very well. As have those who were lending out the shares for the shorting. Probably some of the early WSB pumpers have quietly sold while yelling at the community to hold, too. However, we should always be careful with unrealized gains and losses. Those aren't confirmed until people exit their positions.