301–310 of 430 posts
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10+/trade is going back to the early 2000s for the US. Now it's effectively 0 for most common trades. Here is Schwab for example: https://www.schwab.com/pricing If someone is a big options trader they can probably find a better per contract price out there.
How do they profit? There must be a cost somewhere? Another reply mentioned spreads - still a cost (you lose money when you trade).
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How do they make money from you as a customer?
Quite a lot of customers either have cash sitting in the account which they make interest on, or have margin debt which they charge for.
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How do they make money from you as a customer?
You can Google it, but AUM at scale means .03% is a significant amount of money. There's also uninvested cash that the broker can invest in t-bills and take the spread.
I bet the uninvested cash product drives some weird incentives - kpis around increasing ratio of sells to buys and increasing pain around removing cash.
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Trading fees are at or near zero in the US now unless you mean capital gains.
You pay the spread and you also have impact in the market.
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The other neat thing about ETFs is that there are so many similar, you can effectively use them for TLH to help offset future gains.
The IRS disallows wash sale deductions if you reinvest in a substantially similar investment within 30 days. I'm not an IRS agent and have no idea what they mean by substantially similar. You might want to talk to your tax accountant.
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I’d wager a big part of how they make money is as SEC whistleblowers. It’s not as huge of money as shorting is - but it’s typically a single digit percentage of the recovered fines. Considering these guys nailed a company that defrauded people of $3 BILLION dollars, they’d net $30 mil from turning that company in even if the payout is only 1%. The SEC has a policy of paying out part of recovered fines as bounties to…
Do you have any evidence/links that discuss this? I'd be surprised that they'd get any whistleblower fees, because they themselves aren't actually the whistleblower. E.g. a whistleblower usually refers to actual insiders with private knowledge that then "blow the whistle". In Hindenburg's case, they basically just did research anyone is capable of doing (although in many cases, after they became known, they did have…
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Put options are worthless once the price of a stock hits $0. At that point, the stock will be frozen and/or de-listed and your ability to exercise your put will be gone.
Per grok it's not true and per me it's not a problem in practice. A put option is a contract between buyer (me) and a seller of the option. The contract guarantees me a right to sell stock at a strike price to the seller of the option. If current stock price is lower than put contract strike price, I can exercise the contract and make money: I buy the stock from market at e.g. $78 (current price) and sell at e.g. $12…
Did he... link the wrong URL at the end of the post? I thought for sure it was going to be some sort of heartfelt speech, or motivational message, or something. But it's an instrumental DJ set which seems totally out of left field
But if you're into it, Ben Boehmer in Cappadocia, The Blaze atop the Aguile Du Midi in the French Alps are a couple of the many gems in that same series of Cercle sets.