3 ms·
but they blocked stock purchases alongside options, which makes no sense if the justification was collaterals for options
by avereveard 6y ago
but they blocked stock purchases alongside options, which makes no sense if the justification was collaterals for options
- w23j 6y agoStock purchases are settled after 2 days. If the buyer goes broke before that, the seller would be left holding to bag. To mitigate this risk you need to post collateral.
- avereveard 6y agoof course, but if you buy without margin the balance in your account should already be enough to cover the collateral.
- gruez 6y agoBut it's not the brokerage's money on the line, it's DTCC's. From the perspective of the DTCC, there's no difference between a retail brokerage buying $10M of GME and lehman brothers buying $10M of GME.
- ric2b 6y agoBut if the brokerage already has your money they can use it to post collateral. And yet they banned everyone from buying. A lot of stuff doesn't add up here.