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Calamari41

Member
Oct 25, 2017
7,104
My friend is telling me that this isn't a good thing and only hurts the little guys in the end (people's pensions and stuff like that). That this doesn't affect the big guys at all. Is that the case? I don't know enough about this to understand what's happening in the bigger picture

Retirement funds don't tend to mess around with the kind of games that are being "punished" here. If your money is in a retirement fund that goes around shorting stocks, then you've probably willfully entered a very risky fund.

The big guys, meaning the big individuals, are indeed being very very affected by this, which is why you see the entire system taking off the mask and convulsing right before everyone's eyes in an attempt to mitigate the damage being done and prevent it from spreading.
 

Temperance

Member
Oct 25, 2017
5,821
[NO 2FA]
Screenshot_20210128-120050_Discord.jpg
not gonna believe it till i see a bunch of others to back it up.
 

Deleted member 2379

User requested account closure
Banned
Oct 25, 2017
1,739

Charizard

Member
Oct 25, 2017
2,908
Likely a Reg T margin call. Effectively they were levered too much and had to liquidate the position per the Fed requirements.

Again, if people were sophisticated investors they would know how to manage Reg T risk.

https://www.ecfr.gov/cgi-bin/text-i...60aa8b4a4f43&mc=true&node=pt12.3.220&rgn=div5

https://www.fidelity.com/learning-c...ng/avoiding-margin-account-trading-violations
Does that basically just mean that because the stocks were bought on margin, once the price tanked past a certain point the system automatically sold it to obey regulations?
 
Oct 27, 2017
42,701
My friend is telling me that this isn't a good thing and only hurts the little guys in the end (people's pensions and stuff like that). That this doesn't affect the big guys at all. Is that the case? I don't know enough about this to understand what's happening in the bigger picture
I'm no expert, but if I had to guess I'd say hedge funds probably deal more with more volatile stocks than the ones backing most retirement funds, which would/should be fairly safe and consistent
 

Sectorseven

Member
Oct 25, 2017
6,560
Does that basically just mean that because the stocks were bought on margin, once the price tanked past a certain point the system automatically sold it to obey regulations?
It might be a legal requirement, but it's also possible the person was so deep in the red at that point, the broker knew there was no way they would ever be able to pay it back and liquidated it before it plunged further.
 

Zachary_Games

Member
Jul 31, 2020
2,979
Just read GME is trading on WeBull. Can't confirm because I don't have the app. Thought I would share. Also saw GME short float is 250%. If true, these idiots on Wall Street are high on cocaine.
 

Keyser S

The Fallen
Oct 26, 2017
8,480
GME is 240 now, only down 15 from the open today. That is after all the effort in the world was used to try and crush it. And apparently the stock is even more short that it was before (not confirmed).

Tomorrow will be nuts. And if they allow the apps to trade again they will break records
 

Thewonandonly

Avenger
Oct 25, 2017
4,251
Utah
Man I'm trying to get an account to by some GME cause now I'm pissed and need to spend the misely 100 I got to stick it to the man a bit! Fidelity keeps shitting the bed like crazy and Webull is taking a while is there anywhere else to go?