Reddit and GameStop

Detroitgator

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GME down to $208 after being at $483. :lol:
It's still up more than 200% from Monday. The people that were in this from the beginning (even as late as Monday) are still up anywhere from 200-2000%... dummies who got in when dave portnoy et al start tweeting about it are, well, dummies.
 

Mr2Bits

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CTRM is the move for the day......get a little and get out before bedtime
 

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alcoholica

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Maybe instead of trying to screw over the little guy, maybe the geniuses at the hedge funds should learn that risk exists and applies to EVERYONE
 

FireFoley

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It's still up more than 200% from Monday. The people that were in this from the beginning (even as late as Monday) are still up anywhere from 200-2000%... dummies who got in when dave portnoy et al start tweeting about it are, well, dummies.

I was thinking about this as I made made career in the financial markets but am no big supporter of the Wall Street muckity muck, Government Sachs types, etc. and really do not have a huge problem if the couch potatoes want to push stocks one way or another. But what I don;t want is this. When the GME's KOSS's, et al of world go back to single digits, I don;t want the Pocohontas Warren's and the Bernie Sander's of the world complaining that these "innocent" people were robbed and should get their money back!
 

backstop13

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if the above is true, we'll find out who the government is truly aligned with...wall street or retail investors
 
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GatorCatsi

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I do not trade on Robinhood or any of these so called apps, but is it true that they barred trading in certain options/stocks? That is not what I heard. My understanding is that they are not allowing any new initiation of positions in those stocks without 100% margin. As far as options go, I heard they wanted 300% margin. these were company decisions I heard. Anyone know if this is true. BTW upping margin requirements is not unusual with things get much more volatile. But it does limit the number of people who can participate.
They're now selling users' positions at-will, without a sell order being placed.

 

FireFoley

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They're now selling users' positions at-will, without a sell order being placed.




I am not defending anyone nor do I know any details, but I do know the rules. If a brokerage firm issues a margin call to someone they have two choices: Come up with more assets or if not, the brokerage can liquidate your position(s). and the brokerage can choose to liquidate what they want to to meet that margin call. The customer can not dictate.
 

GatorCatsi

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I would love to know if these shares were purchased on margin or not.
According to Robinhood's terms of service:

When you sign up for a new account, you’ll automatically start with a Robinhood Instant account, which is a margin account. This means you’ll have access to instant deposits and extended-hours trading. You also won’t have to wait for your funds to process when you sell stocks or make a deposit (up to $1,000).
 

GatorCatsi

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I am not defending anyone nor do I know any details, but I do know the rules. If a brokerage firm issues a margin call to someone they have two choices: Come up with more assets or if not, the brokerage can liquidate your position(s). and the brokerage can choose to liquidate what they want to to meet that margin call. The customer can not dictate.
What I can't tell for sure is whether or not all RH accts are margin accts. If someone upgrades to a "Goldh account" does that mean it's not a margin account?

Here are there three accounts:


Robinhood Instant
When you sign up for a new account, you’ll automatically start with a Robinhood Instant account, which is a margin account. This means you’ll have access to instant deposits and extended-hours trading. You also won’t have to wait for your funds to process when you sell stocks or make a deposit (up to $1,000).

Robinhood Gold
A Robinhood Gold account is like a Robinhood Instant account, but gives you access to more buying power and larger instant deposits.

Robinhood Cash
A Robinhood Cash account allows you to place commission-free trades during the standard and extended-hours trading sessions. You won’t have access to instant deposits or instant settlements. You can downgrade to a Cash account from an Instant or Gold account at anytime.
 

FireFoley

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According to Robinhood's terms of service:

When you sign up for a new account, you’ll automatically start with a Robinhood Instant account, which is a margin account. This means you’ll have access to instant deposits and extended-hours trading. You also won’t have to wait for your funds to process when you sell stocks or make a deposit (up to $1,000).

That is interesting that they are somewhat encouraging margin trading. However the customer can choose NOT to trade on margin and thus never be forced into a liquidation for insufficient assets. All I am saying is that if a person wants to swim in the deep end of the pool they need to know all their options and take some personal accountability.
 

GatorCatsi

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I am not defending anyone nor do I know any details, but I do know the rules. If a brokerage firm issues a margin call to someone they have two choices: Come up with more assets or if not, the brokerage can liquidate your position(s). and the brokerage can choose to liquidate what they want to to meet that margin call. The customer can not dictate.
Understood, but they don't appear to be issuing the margin call in a way the customer can come up with more money. They're just selling the stock at whatever price they happen to sell it and notifying the customer what they've done.
 

GatorCatsi

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That is interesting that they are somewhat encouraging margin trading. However the customer can choose NOT to trade on margin and thus never be forced into a liquidation for insufficient assets. All I am saying is that if a person wants to swim in the deep end of the pool they need to know all their options and take some personal accountability.
I don't believe they're "somewhat" encouraging it. It seems to be their entire business model.
 

FireFoley

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Understood, but they don't appear to be issuing the margin call in a way the customer can come up with more money. They're just selling the stock at whatever price they happen to sell it and notifying the customer what they've done.

Unless it has changed, you usually have a couple hours to come up with the assets. Otherwise you are SOL This is not like an overdraft notice.
 

GatorCatsi

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Agree. B/C the more orders they can generate the more order flow they can sell to market making firms.
Yep. In particular to High-Frequency Trading Firm Citadel, who just bailed out Melvin, the hedge fund that was taking it in the arse due to their massive short position in GME.
 

FireFoley

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The one thing I do not agree with is the restricting of establishing a new position in some of these stocks by firms. I think if a customer can fund 100% of a new long position they should be able too. If they want to initiate a new short position and since they could have an unlimited loss, if the firm wants 1000% margin or whatever, so be it. But if fully funded I see no reason to bar establishing a new position.
 

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