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This is as I understood it. There is a lot of misinformation from folks who believe to understand the entire situation from all players' perspective. I am not a
by fumar 6y ago
This is as I understood it. There is a lot of misinformation from folks who believe to understand the entire situation from all players' perspective. I am not able to comprehend the situation well enough. If anyone has seen a good non-biased write up on what has happened so far and what may happen, I would love to see it.
- kmonad 6y agoI feel that I learnt something from this twitter thread. https://twitter.com/KralcTrebor/status/1354952686165225478 https://twitter.com/KralcTrebor/status/1354952686165225478
- amluto 6y agoThat’s a good thread. Here’s the part that makes no sense to me: why can’t Robinhood use customer funds for their deposit? Imagine a degenerate case: all but one client make no trades at all. One client has $100k deposited and buys $100k worth of GME. Prior to settlement, GME drops by 50%. That client is (effectively) out the entire $100k, and they are owed $50k worth of GME. Robinhood needs to post somewhere between $50k and $100k of collateral to the clearinghouse. This all seems entirely reasonable with one giant of exception: apparently Robinhood may not draw on the client’s deposit for this. Never mind that, at settlement, the client will be debited the entire $100k. Somehow Robinhood is expected to temporarily come up with an additional $50k-$100k for a two day period. This seems bizarre to me.
- deleted 6y ago[deleted]