681–690 of 1001 posts
Earlier quoted context omitted.
The head of NASDAQ even suggested a Tradimg Halt so institutions can adjust to combat retail investors better!
We're close to reaching a "let them have cake" point of elite arrogance.
Wow. First the Discord ban and then this - clearly the billionaire hedge fund managers have been busy pulling strings overnight. Limiting it so you can't buy, you can only sell... Very clearly helping the hedge funds here.
Trading stocks is not the 1st amendment where we basically say we don’t really care about the outcome of your speech (as an individual). Say what you want even if its dumb and hurts you. With capital markets...there absolutely is a goal, and it’s not speculation/gambling. The goal is to have a place where corporations can raise capital and investors can hold them accountable for how they return value to them...and th…
Earlier quoted context omitted.
> Can someone help me understand Robinhood's POV? Robinhood is a margin-lending options-trading broker. If a customer falls down on a trade, it is ultimately liable. If a retail customer loses money and makes a FINRA complaint that Robinhood induced them to buy through its gameified interface, it is liable. Risk and compliance likely made this call. Also, Robinhood makes its revenue from market makers. They are the c…
This is most likely the answer. They are taking on a lot of risk allowing this type of trading behavior. They likely don't have suitable risk infrastructure developed to feel like they have a handle on it, so they shut it down.
Additionally, other retail brokers selling to Citadel Capital have done the exact same (Schwab comes to mind, but not only).
Other brokers however (fidelity), have not. If the short squeeze is to happen tomorrow, this seems an unlikely coincidence that those retail brokers affiliated with Citadel Capital tool positions that would ultimately deflate the stock.
I don't see how GP can assure that no short sellers is behind those moves.
99.99% (or more) of people who buy lotteries, lose ALL their money. However, government allows anyone to buy them. There is no meaningful restriction for an assured destruction of wealth for most of those who buy them. While this GME/AMC run will not end well for many people, restricting people from buying those stocks - whether it is through actions of trading platforms or governing agencies - smacks not just of pat…
And governments often do restrict other forms of gambling associated with more problematic losses. There are those who would like them more restrictions on it, and those who would like fewer, but at least the latter group don't argue that without loosening gambling laws, the little guy doesn't stand a chance of wealth improvement.
As I understand it, the hedge funds had naked shorts. That's illegal. If they did, what is happening to them serves them right. Even if they didn't, a "short squeeze" is perfectly legal. If the short sellers think the stock is overpriced, and there's others that think its underpriced, then both sides are placing their bets and will deal with the result, either by making or losing a lot of money. This is not a "pump a…
There is no evidence to indicate they had naked shorts. They were most likely short, but not naked short.
However, the whole point of Robinhood is to allow people to buy the stocks they want.
Would they also have stopped people buying Tesla a few years ago? This has proven to be right bet. However given r/teslainvestorsclub strongly pushing for the stock, could be interpreted as the same thing.
Robinhood seems to just decide who can be a winner.
Earlier quoted context omitted.
While what you say is plausible, can't it also simply be that they saw a gigantic portion of their userbase making these incredibly risky bets and they were worried that it'd end up blowing in their face?
That doesn't make any sense because they still allowed them to sell, realizing a loss. Why not stop buying and selling?
Earlier quoted context omitted.
This is so true. It's all connected. It's probable that Reddit, Discord, RobinHood have all received calls to disrupt retail traders from political players or financial backers. There's no evidence of this, the truth is we'll never know, but how its most obvious reason. If only RobinHood would live up to its namesake. It is alarming that "soft" circuit breakers are being used to target retail traders on exchanges. I…
When Wall Street is making billions off of selling balloon interest mortgages with no income verification the position is "The consumer is an adult and can make decisions for themselves and read the fine print.... blah blah blah .. personal responsibility." When the people are causing Wall Street to lose billions on their absurdly large short position, suddenly they are concerned for the "amateur" investors. The "uns…
Earlier quoted context omitted.
This is so true. It's all connected. It's probable that Reddit, Discord, RobinHood have all received calls to disrupt retail traders from political players or financial backers. There's no evidence of this, the truth is we'll never know, but how its most obvious reason. If only RobinHood would live up to its namesake. It is alarming that "soft" circuit breakers are being used to target retail traders on exchanges. I…
I look forward to the investigations on market manipulation that RH, Schwann, and TD did by not allowing their customers to trade on that stock. Or is it normal for brokers to independently halt trades on stocks they deem too risky?