4 ms·

Not impossible, but IMO highly unlikely: stocks, especially smaller ones can be way more volatile than any currency with over 1T market value. And you can still

by ptero 6y ago

Not impossible, but IMO highly unlikely: stocks, especially smaller ones can be way more volatile than any currency with over 1T market value. And you can still buy those on margin.

niceairport 6y ago
That's true. Maybe something to do with regulations then? HSBC is already being accused of being involved with money laundering quite a lot. Also, what other coins except BTC have market cap >1T?
- ptero 6y ago
  I suspect regulation (or fear of impending one) is the likely culprit; but again, not sure. Re: size -- I was including regular fiat currencies, not just digitals.
perl4ever 6y ago
>you can still buy those on margin That is absolutely not the case in a categorical sense. Brokers can and do apply different margin requirements on a stock by stock or customer by customer basis. There's nothing out of the ordinary about a security not being marginable or having increased requirements due to risk assessment. For example, here is a list of stocks at one broker with particular margin requirements, and it says it "changes frequently": https://invest.ameritrade.com/cgi-bin/apps/u/MarginReq https://invest.ameritrade.com/cgi-bin/apps/u/MarginReq Given that there are hundreds starting with "A", I'd assume the entire list is in the thousands, of securities that have individual margin requirements. I think in fact the ticker GBTC which is a trust that owns Bitcoin isn't marginable.
- codetrotter 6y ago
  Note, the page you linked to requires login.
  - perl4ever 6y ago
    Well, here is a public page (with just GME) that proves the point that they can and do apply requirements to individual stocks, anyway: https://www.tdameritrade.com/td-ameritrade-trading-restrictions-stocks.page https://www.tdameritrade.com/td-ameritrade-trading-restricti... Here's another with GME and AMC: https://www.schwab.com/margin-updates https://www.schwab.com/margin-updates But there are also lots of others you never heard of, that aren't mentioned.
klodolph 6y ago
Doesn't the market volume have a multiplicative effect, though? In other words, it's not just volatility, it's volatility x volume. Or something like that.

by ptero 6y ago

Not impossible, but IMO highly unlikely: stocks, especially smaller ones can be way more volatile than any currency with over 1T market value. And you can still buy those on margin.

niceairport 6y ago

That's true. Maybe something to do with regulations then? HSBC is already being accused of being involved with money laundering quite a lot. Also, what other coins except BTC have market cap >1T?

ptero 6y ago
I suspect regulation (or fear of impending one) is the likely culprit; but again, not sure. Re: size -- I was including regular fiat currencies, not just digitals.

perl4ever 6y ago

>you can still buy those on margin That is absolutely not the case in a categorical sense. Brokers can and do apply different margin requirements on a stock by stock or customer by customer basis. There's nothing out of the ordinary about a security not being marginable or having increased requirements due to risk assessment. For example, here is a list of stocks at one broker with particular margin requirements, and it says it "changes frequently": https://invest.ameritrade.com/cgi-bin/apps/u/MarginReq https://invest.ameritrade.com/cgi-bin/apps/u/MarginReq Given that there are hundreds starting with "A", I'd assume the entire list is in the thousands, of securities that have individual margin requirements. I think in fact the ticker GBTC which is a trust that owns Bitcoin isn't marginable.

codetrotter 6y ago
Note, the page you linked to requires login.
- perl4ever 6y ago
  Well, here is a public page (with just GME) that proves the point that they can and do apply requirements to individual stocks, anyway: https://www.tdameritrade.com/td-ameritrade-trading-restrictions-stocks.page https://www.tdameritrade.com/td-ameritrade-trading-restricti... Here's another with GME and AMC: https://www.schwab.com/margin-updates https://www.schwab.com/margin-updates But there are also lots of others you never heard of, that aren't mentioned.

klodolph 6y ago

Doesn't the market volume have a multiplicative effect, though? In other words, it's not just volatility, it's volatility x volume. Or something like that.