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Robinhood trading platform needing to draw lines of credit as angry gamestop traders close accounts.


jimmy2x3

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Well well, so they restrict the accounts to stop purchases of gamestop and other highly shorted shares. Senators in usa going nuts about it, investors going nuts about it, complaints of Robinhood in cahoots with other platforms trying to save the short sellers. talks of investigating market manipulation. 

 

So now everyone and his dog is now closing out their robinhood accounts and they have had to call on lines of credit to pay out all the accounts,bloomberg reporting over $1 billion drawing so gar. it has exposed shortfalls in the trading platform. This could cause a whole stock market crash as worried investors are pulling out to safety. 

But thats chump change to what might happen next. and if im honest should have been the first direction. and thats to cause a squeeze on silver. This is the fear of the markets, there is 1200 ounces of silver traded for every 1 oz in existance. imagine the holders of the ETFS had to cover them, its the 70s cornering of the silver market all over again. 

 

intresting days ahead 

Edited by jimmy2x3
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4 minutes ago, Roman Roady said:

I am a bit behind the curve with all of this Game Stop thing. Can some kind sole help a confused Boomer/Gen Xer to understand...in terms a Labrador might get.

Honestly, my opinion is that social media is being used to convince millennials that they should buy certain stocks, the idea is that they are sticking it to hedge funds.  The hedge funds are supposed to have shorted those stocks.  Shorting stocks is taking a bet that they will drop.  So by convincing others to buy the stock it’s screwing the hedge fund.  At a certain point they lose the bet and that is costly.  
 

Personally, I am sceptical about this being a true Robin Hood movement and I would not be surprised if it’s a way to convince people to buy stock that is held by those starting the chain of events.  

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2 minutes ago, satsuma said:

Honestly, my opinion is that social media is being used to convince millennials that they should buy certain stocks, the idea is that they are sticking it to hedge funds.  The hedge funds are supposed to have shorted those stocks.  Shorting stocks is taking a bet that they will drop.  So by convincing others to buy the stock it’s screwing the hedge fund.  At a certain point they lose the bet and that is costly.  
 

Personally, I am sceptical about this being a true Robin Hood movement and I would not be surprised if it’s a way to convince people to buy stock that is held by those starting the chain of events.  

That sounds like great fun if true 😁

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5 minutes ago, Roman Roady said:

I am a bit behind the curve with all of this Game Stop thing. Can some kind sole help a confused Boomer/Gen Xer to understand...in terms a Labrador might get.

millions of young americans are using trading platorms. (these platforms allow micro trades ie 20 quid or 50 quid etc trades. trades unviable in normal accounts where you would pay a transaction fee and thus require you to make large gains to cover the trade cost on micro deals). Anyway these young people angry at the way the markets are skewed in the favour of the big institutions have used social media to act in concert to buy heavilly shorted shares. ie shares that many big institutional investors have bets on that they will fall in price, many of these are naked shorts ie for every percentage point drop they could lose millions. man feel they use these shorts to control the market t their advantage and against the little guy. 

so the little guy has decided to all buy micro amounts using these trading platforms by the million, thus causing gamestop who was basically picked as its a heavily shorted company and would cause the most damage to the institutions holding the shorts. However after 5 days of this the trading platforms ie robinhood, trading 212 etc have restricted all the accounts dealing in these shares. This has caused outrage in usa because its being seen as doing so to save the institutions that the little guy has on the run, many losing untold billions of dollars. So in retaliation robinhood traders are closing out their accounts completely, this is now causing robinhood to need to draw on its lines of credit to pay out all those leaving, a bit like a bank run. And like a bank run the more that leave the more that think they better get their cash outta there quick. so thats where we are now at. The story is far from over and looks like its only starting. so everyone is wondering what part of the market is going to be disrupted yet. 

 

in otherword, young people sick of no houses, no hope, have decided to start a war on the financial institutions. 

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37 minutes ago, jimmy2x3 said:

Well well, so they restrict the accounts to stop purchases of gamestop and other highly shorted shares. Senators in usa going nuts about it, investors going nuts about it, complaints of Robinhood in cahoots with other platforms trying to save the short sellers. talks of investigating market manipulation. 

 

So now everyone and his dog is now closing out their robinhood accounts and they have had to call on lines of credit to pay out all the accounts,bloomberg reporting over $1 billion drawing so gar. it has exposed shortfalls in the trading platform. This could cause a whole stock market crash as worried investors are pulling out to safety. 

But thats chump change to what might happen next. and if im honest should have been the first direction. and thats to cause a squeeze on silver. This is the fear of the markets, there is 1200 ounces of silver traded for every 1 oz in existance. imagine the holders of the ETFS had to cover them, its the 70s cornering of the silver market all over again. 

 

intresting days ahead 

How solvent are the crypto trading platforms on the same note?

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restricting the accounts from trading these stocks has showed up the market as fixed . a free market should allow the shorts to take the hit. 

 

think about it like bailing out the bankers by taking the money out of the banks saving accounts.  yes its actually that bad 

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44 minutes ago, jimmy2x3 said:

Well well, so they restrict the accounts to stop purchases of gamestop and other highly shorted shares. Senators in usa going nuts about it, investors going nuts about it, complaints of Robinhood in cahoots with other platforms trying to save the short sellers. talks of investigating market manipulation. 

 

So now everyone and his dog is now closing out their robinhood accounts and they have had to call on lines of credit to pay out all the accounts,bloomberg reporting over $1 billion drawing so gar. it has exposed shortfalls in the trading platform. This could cause a whole stock market crash as worried investors are pulling out to safety. 

But thats chump change to what might happen next. and if im honest should have been the first direction. and thats to cause a squeeze on silver. This is the fear of the markets, there is 1200 ounces of silver traded for every 1 oz in existance. imagine the holders of the ETFS had to cover them, its the 70s cornering of the silver market all over again. 

 

intresting days ahead 

The rich cannot be allowed to lose.

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Thanks to all of you "young people" for the explanation.

Just checked my Crypto and BTC, ETH are showing steep rises.

The Roman Roady household is also hedged into physical PM's...so heres hoping theres turmoil in those ETF's.

This might (just might) be Rodeo time!

 

Is it wrong to enjoy all the chaos porn of late?

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8 minutes ago, Roman Roady said:

Thanks to all of you "young people" for the explanation.

Just checked my Crypto and BTC, ETH are showing steep rises.

The Roman Roady household is also hedged into physical PM's...so heres hoping theres turmoil in those ETF's.

This might (just might) be Rodeo time!

 

Is it wrong to enjoy all the chaos porn of late?

Yippee.

2% of my portfolio has gone up 10%.

98%has gone down 2%.

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1 hour ago, Roman Roady said:

I am a bit behind the curve with all of this Game Stop thing. Can some kind sole help a confused Boomer/Gen Xer to understand...in terms a Labrador might get.

I think all the sole are caught up in Brexit red tape awaiting export to the continent.

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1 hour ago, jimmy2x3 said:

in otherword, young people sick of no houses, no hope, have decided to start a war on the financial institutions. 

From my dips into the chans/reddits/twitter a significant percentage of the people starting this are what I would call extremists, although they seem to span the breadth of extremism - that is, there are as many white nationalist/neo-nazi kids encouraging the 'movement' as there are tankies/anarchists. These aren't necessarily poor kids; these are incels, gamers, anime/hentai obsessives who have an abundance of spare time and money because mummy is home schooling and daddy is working and all their friends are online 24/7.

This is what happens when we stop sending kids into war. They make their own.

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Just now, rantnrave said:

I think all the sole are caught up in Brexit red tape awaiting export to the continent.

Yes i am somewhat embarrassed by my use of "sole" there. My 1970's English teacher would have thrown the board rubber at me for that one...we were all trampled under foot back then.

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This all seems driven by the same sentiment as the Occupy Movement, which ultimately achieved little.

In days gone by, there were savings account for people who wanted a lower return but no risk and shares for those prepared to potentially lose capital for the chance at more reward. With savings accounts now paying 0.5%, where is the risk free option to gain a return?

(yes, I know savings accounts aren't totally risk free re £85k limits, FSCS etc)

 

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