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  • manipulation

    I think that is bandied about too much. I feel some have taken advantage of the weakness of the infrastructure but I think it volumes that have strained the system.

    I believed that Robinhood and the small brokers didn't have the collateral to settle over the weekend as DTC (who holds the physical shares) upped its requirement from 2% to 100% due to volatility and the risk of overselling and misselling. This cant be the clients money, it needs to be separate (ring fencing).

    Someone with more know, plz correct me.

    I don't know why IG would restrict it. IG is huge and has the funds.

    I can only hazzard a guess and say there was mistakes and the hold was to allow the correction.

    If I'm right this is the first time in recent history this has happened. I'm not sure our archaic controls were up to the task.

    Anyone is settlements or such on here have a better explanation?

    Edit: from IG
    We have also made the difficult decision to temporarily suspend new trading on GameStop and AMC Entertainment. We fundamentally believe in empowering our clients and enabling them to trade what they want, when they want, how they want. This decision has been entirely motivated by our desire to ensure our platform and services remain fully operational for existing clients, as we prioritise giving you the best service we can.

    I guess this is the equivalent of a DDOS attack but on the platforms.

  • "We fundamentally believe in empowering our (shitcunt banker) clients"

  • video
    Here's a great video with what's happening

    Really good synopsis actually

  • Thats great! THank you! Will read shortly. (see what i did there?)

  • from a bloomberg article by matt levine

    here's how 100 shares can become 280

    but let’s just retype it. “There are 100 shares. A owns 90 of them, B owns 10. A lends her 90 shares to C, who shorts them all to D. Now A owns 90 shares, B owns 10 and D owns 90—there are 100 shares outstanding, but 190 shares show up on ownership lists. (The accounts balance because C owes 90 shares to A, giving C, in a sense, negative 90 shares.) Short interest is 90 shares out of 100 outstanding. Now D lends her 90 shares to E, who shorts them all to F. Now A owns 90, B 10, D 90 and F 90, for a total of 280 shares. Short interest is 180 shares out of 100 outstanding. No problem! No big deal! You can just keep re-borrowing the shares. F can lend them to G! It's fine.”

  • Shorts appear to be exiting their positions. There's a lot of speculation about how this is happening, or whether it is truly happening at all - there are tactics that can be used to "counterfeit" stock or manipulate disclosed short short interest - but the short interest numbers we've been following all along are definitely trending down.

  • checks out

  • It's version 2 of the weird conspiracy theory thing that was linked to an SEC consultation - I haven't compared it all, but they added a picture of an iceberg, so that's nice.

    There seem to be two things going on:

    1. a lot of very motivated reasoning, apparently based on the belief that share prices going down is a bad thing done to harm companies. Presumably no company has ever been overvalued, and no investor wants to know that their money could more usefully be invested elsewhere.
    2. the continual (and frequently italicized) use of the word counterfeit to make things sound scary, in almost exactly the same way as fractional reserve banking is criticized for creating money out of thin air.

    Having said that, there's also a decent section on genuinely dodgy short attacks. It's undermined a bit by all the emotive crap, but otherwise OK. Unfortunately it makes no effort to distinguish between these and simply shorting a company you think is overvalued (and I'm not offering any opinion on which of those better describes GME).

  • Huge drop on open.

    What on earth is going on?

  • it's from trading after the market closed yesterday

  • here's how 100 shares can become 280

    Much like money. Or securities. Or commodities. Or seashells.

    Now A owns 90, B 10, D 90 and F 90, for a total of 280 shares.

    Not really. When everything is settled, there will be 100 shares.

    There is no such thing as counterfeiting stock, other than with a fairly arbitrary definition of counterfeiting.

  • Plus some traders are still blocked out first thing. Freetrade had an announcement that they were only executing sell orders of GME/NOK/AMC/etc in the morning.

    Looks like the shorters are getting the mornings to pull the price down and trigger a panic sale amongst the holders later before buys are allowed.

  • Revolut stopping buys apparently

  • That or the squeeze is squoze (and there are enough shares floating for shorters to close their positions and re-short it) and so there's nothing to stop the price plummeting due to the shorting.

    Guess we'll see just how many people put play money into GME and how many put real money in.

  • Can't see it rallying anywhere above $200 from where it is now. Squeeze is pretty much done. Happy to be proved wrong though.

  • What a ride. Really hope some definitive answers come out, but I guess that's wishful thinking.

  • What a ride. Really hope some definitive answers come out, but I guess that's wishful thinking.

    One definitive answer from all this: retail investors can get fucked over in broad daylight and it will all be brushed aside.

  • so fucking keen for the loss porn to start appearing on wsb - gonna be great

    that said; hope those on here who invested didnt lump life savings/pensions into it..... unfortunately the moment something like this hits the mainstream media it is over for amateur /retail investors to get in on. smart money will have already moved on... see: tulips, bitcoin (although yes long-term hold for bitcoin has worked out)

  • There's already a post on /r/stocks where someone put in 80K @ 350 a share at the end of last week asking how screwed they are (very, IMO).

    While I'm rolling eyes at talking heads and hedge fund managers on TV telling retail to be very careful playing this risky game (crocodile tears isn't it, they normally couldn't care less when others lose money) there is nonetheless plenty of truth to it, people ought to know better.

  • Oh well, there goes my punt.

    Balls.

    I wonder if i can unquit my job. ...

  • Just you wait. Still life in it yet I think.

  • Well... its now climbing.... Come on GameStop!!!

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Investment & Investing

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