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Stock 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 c
by w23j 6y ago
Stock 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.