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  #21  
Old 29.01.2021, 13:35
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Re: Gamestop/Robinhood

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We all buy DogeCoin
It’s ‘price’ is up 300% in last 24 hours.
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  #22  
Old 29.01.2021, 14:14
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Re: Gamestop/Robinhood

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It’s ‘price’ is up 300% in last 24 hours.
Woof Woof
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  #23  
Old 29.01.2021, 16:20
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Re: Gamestop/Robinhood

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I hope that another side effect will be an investigation and regulation of these trading apps.

I hope so too. Curious behavior by Trade Republic in Germany first banning trading in Gamestop and then allowing it again just a few hours later.
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  #24  
Old 29.01.2021, 16:28
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Re: Gamestop/Robinhood

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I hope so too. Curious behavior by Trade Republic in Germany first banning trading in Gamestop and then allowing it again just a few hours later.
Liquidity issues?
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  #25  
Old 29.01.2021, 16:43
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Re: Gamestop/Robinhood

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Liquidity issues?
Or using the time to secure their own positions..
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  #26  
Old 29.01.2021, 16:56
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Re: Gamestop/Robinhood

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so what's gonna happen to gamestop when everyone ends up selling?
for every transaction, there is a seller and a buyer.
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  #27  
Old 29.01.2021, 17:00
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Re: Gamestop/Robinhood

Will be interesting to see if anyone involved is prosecuted. Market manipulation is an offence and this does appear to be coordinated market manipulation rather than just a rush of independent buyers.
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  #28  
Old 29.01.2021, 17:11
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Re: Gamestop/Robinhood

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Forgive the noob question but were these consumer investors actually trading the underlying with their own money or were they margin trading / spread betting off-market? If the latter you can kind of understand why the platforms might have locked them out.
RH raised marign requirements to 100% to buy GME and 300% to sell, so anyone trading on margin without a big account would have been quickly margined out.

Due to the huge volatility, RH themselves had to post a lot of capital and in the end stopped trading in the reddit stocks. (RH said they had to draw down on credit lines to post this collateral).
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  #29  
Old 29.01.2021, 17:30
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Re: Gamestop/Robinhood

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RH raised marign requirements to 100% to buy GME and 300% to sell, so anyone trading on margin without a big account would have been quickly margined out.

Due to the huge volatility, RH themselves had to post a lot of capital and in the end stopped trading in the reddit stocks. (RH said they had to draw down on credit lines to post this collateral).
Just read that RH secured $1 billion in capital to meet surging cash demands.
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  #30  
Old 29.01.2021, 17:48
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Re: Gamestop/Robinhood

Someone mentioned sale of order flow.

https://miro.medium.com/max/1575/0*E2O3hvOtj1EvGxXN
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  #31  
Old 29.01.2021, 17:56
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Re: Gamestop/Robinhood

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Actually, Matt Taibbi just wrote a much better and more comprehensive piece and best of all, I can link it

https://taibbi.substack.com/p/suck-it-wall-street

from your article terri "Reddit forum called “wallstreetbets” somewhat randomly decide to keep short-sellers from laying waste to a brick-and-mortar retail video game company called GameStop, betting it up in defiance of the Street. "

so was GameStop really a random choice? if so...wow.
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  #32  
Old 29.01.2021, 18:04
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Re: Gamestop/Robinhood

In the end there's no problem, we're talking about sophisticated investors who would never mistake GameStop for GME Resources:

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A tiny West Australian mining company has been caught up in the investing craze surrounding US company GameStop thanks to its ASX code matching that of the American video game retailer. GME Resources, which is listed on the local bourse with a market capitalisation of just $40 million, is a mining company focused on nickel and cobalt extraction. On Thursday, its shares soared more than 50 per cent to 12 cents, their highest level since 2018, with volumes of nearly $7 million.

James Sullivan, GME’s managing director, told The Age and The Sydney Morning Herald he was stunned after waking up to see the company’s share price up over 50 per cent. “When I opened my share tracking app and saw it was at 9.4 cents, I was stunned,” he said. “It just went bang, and I thought, ‘Well, what’s going on here?′ Is there something about my own company that I don’t know?” “There were emails and text messages from people flying around, and eventually my brother’s son, who works in Sydney, told us it was about speculation to do with the ticker GME,” he said. “ I was hoping to be able to say it was more to do with our world-class nickel projects.”
https://www.smh.com.au/business/comp...28-p56xh4.html

I see a lot of pain in the future and i cannot help but laughing.
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  #33  
Old 29.01.2021, 18:16
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Re: Gamestop/Robinhood

Here is a Washington Post piece. Adds a bit to what's already been said here.

‘The entire community is outraged’

Robinhood had to raise $1 billion from investors yesterday to help it cover cash demands during the week’s trading frenzy, while traders and lawmakers sharply criticized the online broker for halting some trading in Reddit-touted stocks. In short: The consequences of the mania in GameStop, AMC and other stocks are becoming more concrete — and, in Robinhood’s case, more serious.

The surge in trading forced Robinhood to raise cash. As waves of investors poured into the markets, Wall Street’s central clearing hub, the Depository Trust and Clearing Corporation, demanded billions more in collateral from brokerages to shield it from the volatility. Robinhood, which had already drawn millions from its credit lines to meet margin requirements, turned to existing investors for additional capital so it wouldn’t have to impose further limits on customer trades.

A more detailed explanation: Brokerages post money with the D.T.C.C. to cover customers’ transactions while they wait for the trades to settle. With such a big surge in trading, the clearing hub wanted more assurance: “It’s the D.T.C.C. saying ‘This stuff is just too risky,’ ” said the Bloomberg Intelligence analyst Larry Tabb.
Other online brokerages also cited the D.T.C.C. as a factor in decisions to impose trading restrictions.

Robinhood faces a loss of confidence from customers. After becoming the venue of choice for small investors, the app risks alienating a core customer base — and feelings of betrayal over the trading limits may be harder to address than annoyance over technical outages. (Small groups of protesters gathered in New York and outside Robinhood’s Bay Area headquarters yesterday.) “Brokers are now ‘protecting’ customers as a facade so that they can appease their institutional backers,” one individual trader told Bloomberg. “The entire community is outraged.”

A wild ride with EF providing an excellent analysis.
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  #34  
Old 29.01.2021, 18:24
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Re: Gamestop/Robinhood

Damn.... it's like reading Finnish. I see letters but don't understand the words.
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  #35  
Old 29.01.2021, 18:36
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Re: Gamestop/Robinhood

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In the end there's no problem, we're talking about sophisticated investors who would never mistake GameStop for GME Resources:



https://www.smh.com.au/business/comp...28-p56xh4.html

I see a lot of pain in the future and i cannot help but laughing.



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Damn.... it's like reading Finnish. I see letters but don't understand the words.
That makes you the perfect punter, erm sorry I mean client for these „trading“ apps.
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  #36  
Old 29.01.2021, 19:10
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Re: Gamestop/Robinhood

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Will be interesting to see if anyone involved is prosecuted. Market manipulation is an offence and this does appear to be coordinated market manipulation rather than just a rush of independent buyers.
How do you criminalize that pseudo-spontaneity, though...They'll just use different media next time but the thought is there and the precedence is set.
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  #37  
Old 29.01.2021, 19:18
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Re: Gamestop/Robinhood

Is it worth mentioning that Jared Kushner's brother is involved with this company?
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  #38  
Old 29.01.2021, 19:28
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Re: Gamestop/Robinhood

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Is it worth mentioning that Jared Kushner's brother is involved with this company?
Trump had the same power in the media...no matter what media, though. He might pull the same stunt.

Last edited by MusicChick; 29.01.2021 at 20:35.
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  #39  
Old 29.01.2021, 19:32
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Re: Gamestop/Robinhood

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Is it worth mentioning that Jared Kushner's brother is involved with this company?
Which one, Robinhood?
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Old 29.01.2021, 20:23
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Re: Gamestop/Robinhood

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so was GameStop really a random choice? if so...wow.
No. They were discussing „what’s the share which has the most short seller“. It’s not at all random that it’s GameStop- the company is dying a painfully slow death and has the most predictable slowly declining course...
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