291–300 of 479 posts
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Have you seen the CNBC interview [1] with IBKR chairman, basically saying "once the stock goes back to the price we want we'll let retail investor trade it again"? [1] https://www.youtube.com/watch?v=7RH4XKP55fM
Just saw the interview, looks about what I'd expect from IBKR and why I use them.
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> these claims of "supporting the people" is fundamentally 100% bullshit. what a world where a free platform takes an action to stay solvent and in business and its a bullshit claim that theyre helping their customers. i guess they shouldve done the more helpful thing and gone bankrupt, illegally allowing trades they cant cover.
What a world where people are more concerned about a single company going under than the fact that the working class is finally doing something against the rigged capitalist system.
a certain percentage of people in WSB only want to light a pile of their money on fire for the sole purpose of bankrupting some hedge funds. they expect no returns and only want to cause pain to people with more money than them that they dont like.
another percentage of people (i think this group is much, much larger than the first) think bankrupting the short positions is gonna make them huge returns. they think theyre all david collectively fighting a goliath as the proletariat rises up. most of these people are sorely mistaken and will lose everything, but some will make money.
the RH trade halt (EDIT: only buying was halted, a "trade halt" technically means both) is allowing the shorts to unwind more gracefully, making the first group of people angry. theyre not getting their witchburning, or public execution, or lynching - however you want to frame it.
the problem is the second group of people think theyre being defrauded out of huge returns by an artificial exit from the short squeeze. these people are wrong to begin with. most of them were never going to make huge returns. even if they successfully bankrupted the shorts, most of them are left holding stock they bought for $100, $200, $300, or $400 a share (WSB was memeing share price was gonna go into the thousands) that is worth <$90. those people were always going to lose, they just didnt know it. but now they have a scape goat, even though they were on the wrong side of the trade to begin with.
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…
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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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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…
You might want to look a bit closer at Monzo, there was an entire episode of BBC's Watchdog [0] about them closing accounts and keeping people's money. Mine was frozen for well over a year with about three grand in it, no explanation, no apology. I only got it back in the end by involving the financial ombudsman via a website [1] specifically set up to help people who Monzo have scammed, because there are literally t…
Absolutely demented. Apart from that they refused to send me a machine-readable copy of their response to a DPA request for my records and the support team behind their app literally ghosted me when I kept politely pointing out the inconsistencies in their arguments.
Bonus: when I complained they used someone else's name when responding to it. When I complained again they sent me their response to _a totally different person's complaint about a totally different thing_.
Eventually I went back to First Direct (which is owned by HSBC). Avoid Monzo like the plague.
So, every broker is on margin with DDTC, they don’t have to have 100pct cash for the dollar amount of the buy orders they send to DDTC, as long as they will have the cash in 2 day. Some brokers like fidelity have hoards of 401k money and more likely to have 100pct cash for their orders. Trading brokers like IBKR RH keeps the minimum possible amount of cash with DDTC, and their automated systems adjusted up the minimu…
It's not even clear that continuing to allow low margin on these high volatility stsocks would've been good for consumers. The price would've got driven up further, the shorts would go bankrupt, the companies that loaned the shorts the stocks would recover pennies on the dollar, likely forcing them to sell off their position in GME to cover the losses driving the price through the floor, at which point all those RH traders who don't have quick accecss to the market would be left holding worthless stock, wiping out both their initial investment and probably getting margin called.
For Chrome, open dev tools, ctrl/cmd+shift+p, "disable javascript".
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So the market price which is made from all transactions from all brokers will drop because robinhood users could not buy. That makes no sense to me. If they really wanted to buy they could use another broker? If the market really is dropping then tough luck. You can lose all your money investing in the stock market. If you're leveraged you can lose even more (which might explain why some accounts were closed).
I think you are naive and don’t know what’s happening. GME is emotional and hype play. They got so much coverage and all the retail people were driving prices up have robinhood platform. You cannot open the account within same day even if people wantto buy. Robinhood played with people physchology. After seeing the price drop everyone wanted take profits out because even if people want to buy they couldnot. It was lo…
I disagree. They've offer a way to trade like other platforms. Other platforms did the same thing and blocked trading.
The question you need to be asking is why did they ALL block trading?
They're competitors to each other, so why did they make the same decision? Remember that these firms make money on every trade done. They want to take your trades. BUT they have to manage risk. They lose money if the client can't pay. They're there to facilitate but they are taking risk themselves if they provide leverage. They, like banks providing mortgages have to have limits set. If would be unprofessional and irrational to do otherwise. These firms are there to make money in a highly competitive environment. They are professionally run to ensure that they stay in business.
The comments here are of the theme 'RH has screwed us to make money'. No, what they've most likely done is made a decision to take no more risk to ensure that they remain in business. EVERYONE is speculating though. If that's the case these arguments that the clients are somehow being screwed over is really unfair and shows a lack of understanding. Clients need to understand the risks of what they're doing, and need to understand the risks associated with executing via one broker. It's a professional environment and drive by retail unfortunately are mostly unaware of the true risks.
Examples: 1. Traders have multiple brokers to trade via because there are technical issues
2. If something is too good to be true, it probably is.
3. If you're betting against some professionals, you need to ask what they know that you don't. Why are they comfortable taking on the risk. The professionals will try very hard not to be emotional and have more info that a retail customer will.
4. The retail investor need to understand the business model of the brokers. Why are they in business and what are their limits?
I see the real problem here is that it is easy to put a trade on. It is difficult to know how to risk manage it and understand the risks. This squeeze has identified a limit in the market that wasn't considered.
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What a world where people are more concerned about a single company going under than the fact that the working class is finally doing something against the rigged capitalist system.
actually im glad you said this. this is the core problem with this WSB/RH/GME event. a certain percentage of people in WSB only want to light a pile of their money on fire for the sole purpose of bankrupting some hedge funds. they expect no returns and only want to cause pain to people with more money than them that they dont like. another percentage of people (i think this group is much, much larger than the first)…
People argue that this is criminal market manipulation.
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TransferWise aren't a bank so the financial protects are slightly different I use them for some of my overseas customers, my only challenge with them is the limited number of currencies they support e.g. had to open a Revolut account to get payment from a Canadian customer
TW have all the functional features of a bank lots of people care about. A debit card, direct debits, standing orders etc. I of course recognize they aren't a fully licensed bank, but for EUR balances they are worth a look
With a bank you have up to £85,000 insured and guaranteed e.g. if the bank fails