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so basically the house is now burning. smoke everywhere and there is no time. hedgefund people see a small window and they know that not everybody will be able to jump out of the window. they rush to the window and there are the wallsstreetbets saying "costs around 10000 per share"
Quick question:
If I buy GME Shares, is there a change that I get in debt? Or worst case scenario I loose the money that I invested?
For example:
- Pay 1000€ for GME Shares
- I plummets down to horrible numbers
Do my Shares value 0€? Or will I wake up and see I have -700.000€ in debt lol?
If I buy GME Shares, is there a change that I get in debt? Or worst case scenario I loose the money that I invested?
For example:
- Pay 1000€ for GME Shares
- I plummets down to horrible numbers
Do my Shares value 0€? Or will I wake up and see I have -700.000€ in debt lol?
If you buy shares, you can only lose whatever money you put in. (or it should be, if you buy with margins I've no idea)
I think you can't lose more than what you pay if that's what you are asking. Buy 1000€, worst case you lose that 1000€.
if you buy a share (go long) your maximum exposure is the shareprice when you buy (1000€). this doesnt apply if you borrow money to buy (margin) then your exposure is whatever you have burrowed. The upside is infinite.
Short is the opposite. You burrow a share and you sell it immediately. Then you have to give it back after some time. If the share price goes up you have to pay whatever the price is at the point where the lending period is over. The exposure is infinite the maximum upside is limited to the shareprice where you sell.
Gamestop Corp. (new) Class A Equity | A0HGDX | US36467W1099 | Share Price
Gamestop Corp. (new) Class A share price in real-time (A0HGDX / US36467W1099), charts and analyses, news, key data, turnovers, company data.
Funny how Ted Cruz wanted Dodd-Frank to be repealed a couple of years ago. And yes, RH should be hauled over the coals for this, with their IPO postponed at a bare minimum.
When the bubble burst out a lot of people are gonna loss a lot of money, not only whatever short seller is there if there's any really relevant there after yesterday.
If you have to ask this question, you definitely should not be involving yourself in this, financially.
They doubled down their short positions. And there aren't enough available shares being traded for them to possibly cover before EoD. Their call options are all going to expire today, no one is going to be itm when $GME is already at $469 pre-market.
This is not financial advise
I'm not seeing $469 on any tracker. Where are you looking?
Heading in that direction at least.
407.08 as I just refreshed one page I was looking at.
I haven't played the lotto in a while, I just put an order in that should go through in the morning when the markets open...we'll see if I change it later if I'm still awake.
edit: 423.95 after I posted.
Yeah, at $416 from what I can see. Expecting shenanigans to dip it before the markets open, but will probably rise again.
To everyone wanting to buy stock: the general rule is that if you are hearing about a stock, you've missed the wave. If you're not in the loop, people who do this for a living are already a few steps ahead of you. I'm not saying don't buy, I'm just saying that you should be prepared to lose everything you put in. It's not a safe bet because it's seen unprecedented growth in the recent past.
Gamestop over 400.
It can become the new Bitcoin in value. Even higher potentially. Depending on how much the hedgefunds have to pay for it.
This is entertainment.
It can become the new Bitcoin in value. Even higher potentially. Depending on how much the hedgefunds have to pay for it.
This is entertainment.
That is exactly what people said yesterday. No one really knows when this will go to the moon, or what 'going to the moon' looks like.
IF you still want in I'd sign up with a broking app quickly. It doesn't take that long to do, they might need pictures of some ID. I'm sorry I don't know which apps are still allowing GME trading in the US, but it should be on Reddit.
I bought yesterday at $200 and I'm happy with that. If it's around that level when markets open (if there's a dip) it might be a good idea to buy then. But do treat it as buying. If you buy a share for $200 treat it like that $200 is gone, not just moved elsewhere.So only spend what you would be happy with not getting back.
In short it's not too late if you get set up now, and only buy low.
140% of the free float is shorted. dont fall for the disinformation of the hedgefunds. cnbc etc. are spreading lies.
tell me this guy is not lying.
Hedgefunds literally have to pay stockholders when the clock runs out. Whatever the asking price is.
Not invested in any of this but I have a question, if a hedge fund that shorted a stock goes bankrupt, do the shareholders still get paid? If I understand correctly, this is two parties betting against one another, if Melvin goes under, do they still have to pay the retail investors? Or I misunderstood completely and my question is meaningless?
I wouldn't even know where to start if I wanted to buy shares, let alone an app that works in Australia. Someone mentioned Revolut and I grabbed that thinking it's a share market, and it quite possibly could be after being verified, but I'm actually really intrigued by its other features.
we closed all positions (lies)
i understand if that happens the broker has to jump in and after that the bank
I reckon that the big HF's will still have access to the money required to buy the stock to pay back the shareholders.
Typically true, but nothing about this situation conforms to normal logic.
SelfWealth. Easily the best trade site in Australia and recently are now allowing US shares. Flat fee per trade. It's great, will be using it today for GME
they can actually short the stock again and give it back to the shareholder that way. however that just prolongs the problem and the fees are astronomical.
I appreciate you may have few options and no judgment if you choose to use them anyway but you may want to dodge Revolut if possible - even for finance companies those guys are fucking evil. This article just one example:
Revolut staff claim they’ve been told to quit their jobs or be fired
Staff members at Europe's biggest fintech startup say that they have been pressured into leaving their jobs and taking salary cuts as the company embarks on cost-saving measures
At this point, if you're buying in you're taking a spin of the roulette wheel. It could go up to $1000, it could drop to $50. There's a world where it does both today. Who knows where it settles. I think it's more likely to be low and leave a bunch of people holding the bag, but i'm a pessimist.
Only if you're down for some degenerate gambling, join the club. Buy low. (I am not a financial advisor, this is not financial advice. if it was I would tell you not to buy this stock)
Only if you're down for some degenerate gambling, join the club. Buy low. (I am not a financial advisor, this is not financial advice. if it was I would tell you not to buy this stock)
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With questions like these, you shouldn't buy anything at all.
no he should inform himself and start with blue chip stocks (Facebook, Apple, Amazon, Google for example) and just hold em for one year and see if he can handle the ups and downs.
in what scenario does it go 50 when hedgefunds are obligated to buy?
I'm in Spain using eToro and I can place an order to buy "underlying assets" but in my end it shows a price of 197.46€ instead of the 469$ dollars you mention. If I buy now at which rate would I be buying? Sorry if this is common knowledge, I'm very new in all of this.
People are saying its disinformation, and that they won't expire today; they want stockholders to sell off.
The amount of misinformation/speculation without any knowledge here (and on Reddit) is staggering.
Short-selling is a misunderstood concept, not easy to grasp for sure. But let me tell you some of the basics:
A short sale is when someone borrows (person B) a share from a shareholder (person A), then sells it to person C. Every short that is sold, creates a "synthetic" long position that gets added to the float, in terms of tradeable positions.
So let's say a company has 100 shares outstanding of which 50 are held by management/large holders who don't trade on a daily basis. The remaining 50 would be the float. If there would be 50 shorts (100% short interest of the float), then there would be an additional 50 synthetic longs traded in the market. So the "real2 short interest as a % of float would be 50% (50 shares shorted vs. 50 float + 50 synthetic longs). A share can be shorted many times, i.e. person C which owns the synthetic long, can in turn lend their stock out to person D that can short it and sell it to person E.
There is no time-limit on shorts (unlike options), but the longer one holds, the more expensive it gets (because cost to borrow a stock like GME can cost 50% on an annual basis, so 0.1% per day).
Short squeezes can and do happen (evidently) and it happens when (i) the position gets too big in the hedge fund portfolio and they sell voluntarily or (ii) if they have bought it on margin with a prime broker and they don't have margin any more, then one can force liquidation.
However, important reminder here, the shares that are sold short are not static. I am pretty sure the "old" or initial cohorts of the GME shorts have all covered, but they have most likely been replaced by new ones and they most likely have much smaller positions (per fund) than the initial short cohorts, because they see the volatility of the stock. The new shorts can afford it to go up much more than the initial ones. It is much tougher for it to be a 10x from here now that the market cap is so big (would need significant money in-flow to continue), compared to the past.
And when these funds cover, wouldn't surprise me if new ones come in and just take over the borrow. Because ultimately this is a game of how long this can go on and the hedge funds believe that this stock is not worth more than $10-$20, so it is a safe bet that they will eventually be right if they can "stomach the volatility". So even if there is a further squeeze, new ones will likely come in and replace them.
Then the big question is - what is the end-game here? Say that Reddit can force a short squeeze at the end of the day, when the shorts are gone - there are not going to be enough incremental buyers (except retail investors that can perpetuate the bubble) and then the bubble will most likely deflate. Short squeezes have happened in the past with Volkswagen being the most famous one, and there is a spike, but then eventually once the squeeze is over, the price will return to levels more appropriate. Because if the short squeeze is over, then what are people buying it for?
Short-selling is a misunderstood concept, not easy to grasp for sure. But let me tell you some of the basics:
A short sale is when someone borrows (person B) a share from a shareholder (person A), then sells it to person C. Every short that is sold, creates a "synthetic" long position that gets added to the float, in terms of tradeable positions.
So let's say a company has 100 shares outstanding of which 50 are held by management/large holders who don't trade on a daily basis. The remaining 50 would be the float. If there would be 50 shorts (100% short interest of the float), then there would be an additional 50 synthetic longs traded in the market. So the "real2 short interest as a % of float would be 50% (50 shares shorted vs. 50 float + 50 synthetic longs). A share can be shorted many times, i.e. person C which owns the synthetic long, can in turn lend their stock out to person D that can short it and sell it to person E.
There is no time-limit on shorts (unlike options), but the longer one holds, the more expensive it gets (because cost to borrow a stock like GME can cost 50% on an annual basis, so 0.1% per day).
Short squeezes can and do happen (evidently) and it happens when (i) the position gets too big in the hedge fund portfolio and they sell voluntarily or (ii) if they have bought it on margin with a prime broker and they don't have margin any more, then one can force liquidation.
However, important reminder here, the shares that are sold short are not static. I am pretty sure the "old" or initial cohorts of the GME shorts have all covered, but they have most likely been replaced by new ones and they most likely have much smaller positions (per fund) than the initial short cohorts, because they see the volatility of the stock. The new shorts can afford it to go up much more than the initial ones. It is much tougher for it to be a 10x from here now that the market cap is so big (would need significant money in-flow to continue), compared to the past.
And when these funds cover, wouldn't surprise me if new ones come in and just take over the borrow. Because ultimately this is a game of how long this can go on and the hedge funds believe that this stock is not worth more than $10-$20, so it is a safe bet that they will eventually be right if they can "stomach the volatility". So even if there is a further squeeze, new ones will likely come in and replace them.
Then the big question is - what is the end-game here? Say that Reddit can force a short squeeze at the end of the day, when the shorts are gone - there are not going to be enough incremental buyers (except retail investors that can perpetuate the bubble) and then the bubble will most likely deflate. Short squeezes have happened in the past with Volkswagen being the most famous one, and there is a spike, but then eventually once the squeeze is over, the price will return to levels more appropriate. Because if the short squeeze is over, then what are people buying it for?
They blocked buying of all meme stocks on one major app-only broker in Germany yesterday, but reversed that today after thousands of account closes probably lol. My boomer bank allows everyhting. They probably don't even know what's going on.
They do what they did yesterday, but harder: Engineer a temporary dip in stock price to scare retail investors into selling at the lower price. Just because people mostly held on yesterday doesn't mean the hedge funds won't try again.
eToro allows me to open positions for less than the stonk price stated on the marketplace. So if the stock price is higher than the position I opened do I not get the stock