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> does that have different collateral implications to selling GME to buy GME an hour later? Yes, it does. Robinhood is buying GME for you. They’re buying it o
by ketzo 5y ago
> does that have different collateral implications to selling GME to buy GME an hour later?
Yes, it does.
Robinhood is buying GME for you. They’re buying it on credit (for two days) from a clearinghouse. GME became an extremely volatile asset. That meant that it was much more expensive to buy on credit. Robinhood did not have enough collateral to back up these extremely expensive purchases.