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> Don't most brokers allow you to continue trading before settlement? (so someone has to put collateral for that) Sure, but I wonder why RH didn't just change
by Miner49er 6y ago
> Don't most brokers allow you to continue trading before settlement? (so someone has to put collateral for that)
Sure, but I wonder why RH didn't just change their rules to being that you won't be able to trade instantly with any sold GME, and then used client funds as collateral? This seems much better than stopping buying altogether. I suppose maybe the code wasn't in place for something like this, idk.
- gruez 6y ago>and then used client funds as collateral? check the edit in the parent's comment. It's expressly prohibited.
- tonfa 6y ago> and then used client funds as collateral? But that's not necessarily settled right? E.g. client sells AMC, then buys GME. At this point RH doesn't have the cash to for it (the settlement should clear, but it still needs to come up with the collateral). (I'm not an expert so take it with a grain of salt, but that makes at least some sense :))
- bilbo0s 6y agoand then used client funds as collateral Huh? You realize that's illegal right?
- Miner49er 6y agoIs it? And if so, why?