241–250 of 479 posts
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Retail investors lost millions because of an inability to buy?
If you sell something and there is no buyer, what happens to the price?
But in a more normal position, if there is not buyers at current offering prices, you try to sell at a lower price. Thus, the price drops.
I just finished watching a video from Louis Rossmann [1] as well as one from Bruce Fenton [2]. In his video, Rossmann covers the technicalities and systems behind actually __making__ a trade with an app like RH. The videos were very informative and I learned quite a lot.
With the exception of his recent interviews, it isn’t exactly clear what Robinhood was supposed to do differently. If my understanding is correct, clearing houses required more money up front to perform trades - RH didn’t have it so they stopped the trades unidirectionally. People got upset that they couldn’t buy but could sell which made it seem like RH wanted to manipulate the price - but isn’t it better than the alternative, the inability to both sell and buy would seem to me worse than what was done. Imagine them closing both and preventing people from selling if a crash occurs. The discussion would simply be « Robinhood stole our gains and wouldn’t let us move our funds ».
Now, should it be the case that more money is required up front, intuitively it makes sense, I mean, who is supposed to front the bill on those 5000% returns? The hedge fund that just went bankrupt? Where exactly does this money come from?
Isn’t RH just trying to play within the realities of the current system?
Genuinely curious.
[1]: https://m.youtube.com/watch?v=MAqxQe0l4g0&feature=youtu.be
[2]: https://m.youtube.com/watch?v=RQTC5f_VR9I&feature=youtu.be
I don’t understand how all of a sudden the shift was made onto the insolvency of RH and that the discussion is less about the original conditions that led up to this. I just finished watching a video from Louis Rossmann [1] as well as one from Bruce Fenton [2]. In his video, Rossmann covers the technicalities and systems behind actually __making__ a trade with an app like RH. The videos were very informative and I le…
Robinhood tanked their credibility by letting the mask slip and people are on that like hyenas because of the irony. Really though, the focus on them is a distraction from the much larger slip by the entire financial system.
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I set up a revolut account for currency exchange in 2018 and finally moved to use them as my primary bank in 2020. Never had any significant issues. Recently I was setting up a Revolut Business account and I didn't get a notification email requesting additional evidence. Me not getting an email is something they could improve, but the need for a thorough identity verification is understandable given their global ambi…
I have been also using Revolut as my primary bank since 2017 and no issues at all. On the contrary, great customer service (I was a Metal customer and now Premium customer). Now I even do my trading through them.
and again, for me revolut was a disaster and i will not recommend them.
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I’m not keeping my money with a financial institution that lies to me. I know for a fact my bank lies. They've been fined hundreds of millions of dollars for money laundering (it's HSBC). A few years ago I looked in to moving to a more honest bank, but I couldn't find one that also met basic criteria like having access to cash points in the UK and having a half decent mobile banking app. Literally every major bank th…
i've used: 1. revolut - these guys are complete jokers. closed after being asked to provide the proof of funding 3 times in 3 months. 2. hsbc/first direct - somewhat decent. but i only use it to top up my other accounts. i try to avoid them, as they're just too big. 3. starling - simple, no-nonsense banking from a startup. 4. revolut business - had my account closed down by the "bank" because they didn't want my busi…
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I’m not keeping my money with a financial institution that lies to me. End of story. Transfer initiated on my cash, and I’ll deal with moving stocks in the morning.
I’m not keeping my money with a financial institution that lies to me. I know for a fact my bank lies. They've been fined hundreds of millions of dollars for money laundering (it's HSBC). A few years ago I looked in to moving to a more honest bank, but I couldn't find one that also met basic criteria like having access to cash points in the UK and having a half decent mobile banking app. Literally every major bank th…
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An inability to buy means an inability to squeeze the short harder, and depending on how hard you have squeezed that can affect the overall success of the squeeze. Also they apparently forced sale on some accounts, which combined with an inability to buy more, definitely affected stock prices.
AFAIK the forced sales were margin calls.
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Would the day traders you know be happy using a brokerage who’s liquidity issue mean it’s had to ban trading certain securities? Even if they don’t want to YOLO like a maniac, why would you trust a company that’s had so many very public blunders with your money? It’s not like there aren’t more reputable zero-fee brokerages out there.
...which all did the same thing, no?
I don’t understand how all of a sudden the shift was made onto the insolvency of RH and that the discussion is less about the original conditions that led up to this. I just finished watching a video from Louis Rossmann [1] as well as one from Bruce Fenton [2]. In his video, Rossmann covers the technicalities and systems behind actually __making__ a trade with an app like RH. The videos were very informative and I le…
To be honest, it doesn't really matter. This isn't about whether Robinhood technically must or must not do what they're doing, but that the system is setup in such a way that all these claims of "supporting the people" are fundamentally 100% bullshit. Robinhood tanked their credibility by letting the mask slip and people are on that like hyenas because of the irony. Really though, the focus on them is a distraction f…
Exactly. I also watched the recent CNBC interview with Chamath Palihapitiya [1]. I would like to it, but CNBC keeps taking it down.
In any case, the host really doesn’t seem like he’s there to « get to the bottom of things or to understand » but to push the idea that the problem is anything other than the preconditions that led up to this.
Chamath was spot on.
[1]: CNBC Chamath Palihapitiya Interview January 27th, 2021
"To continue operating, it drew on a line of credit from six banks amounting to between $500 million and $600 million to meet higher margin, or lending, requirements from its central clearing facility for stock trades, known as the Depository Trust & Clearing Corporation." Non-zero chance had they not haulted trading on those symbols they would've been insolvent by close of trading today, depending on the size of the…
Are brokerage deposits / holdings protected by insurance? I'm genuinely fearful of losing my holdings in Robinhood at this point.