[captainarab]

For anyone saying, "Most likely trading on margin"

Remember:

This morning Robinhood conspired with Citadel to halt trading amid a short ladder sell to drive the price lower, allowing shorts to cover their losses with no competition.

This is blatant market manipulation and anti competitive behavior, and must be stopped.

Why does everyone insist on protecting billionaires who insist on playing the game with a different set of rules than the rest of us?

[short_sells_poo]

Do you have any evidence of this or are you just spamming every thread with the same accusations?

[captainarab]

also, you're an obvious hedge fund industry shill, see your comment history

[dang]

Hey, I'm afraid you broke the site guidelines badly and repeatedly. We ban accounts that do that, regardless of how wrong other commenters are or you feel they are.

If you wouldn't mind reviewing https://news.ycombinator.com/newsguidelines.html and sticking to the rules when posting here, we'd be grateful.

[jrochkind1]

OK, but they are almost certainly also trading on margin right?

You trade with robinhood's money, then they can decide not to lend it to you anymore for nearly any reason they want. ¯\_(ツ)_/¯

[hartator]

> You trade with robinhood's money, then they can decide not to lend it to you anymore for nearly any reason they want.

Can they? I thought margin calls were you personal debt. It's like the bank deciding to sell your house that you have mortgage on because they think the market is too volatile. Makes little senes.

[jrochkind1]

> One of the most important things to understand about margin calls is that your brokerage firm has discretion as to when you are required to increase the equity in your margin account. Some firms will attempt to contact you to tell you additional equity is required, but they're not obligated to do so. Whether or not your firm has contacted you, they can take immediate action to increase the equity in your account if they decide the equity is too low and is not in line with the risk of your account. This means they can immediately sell out whichever securities they choose, regardless of the financial and tax obligations for you.

https://www.fidelity.com/learning-center/trading-investing/t...

[captainarab]

Sure, no argument from me on here.

You have to admit, though - that is disingenuous. Those plays were profitable, no need to call them (unless there has been irresponsible behavior on the behalf of the broker)

[short_sells_poo]

That is entirely up to the broker. They make no guarantees to you that they'll underwrite your risk taking with no limits. If you don't want this to happen, go to a reputable broker and make sure you are not trading on margin. This is not rocket science, but does require a basic level of understanding.

[captainarab]

I agree that this is the technically correct definition of how margin is typically utilized, and that investors should be prepared for this in the case of high volatility.

The fact does remain, though, that the way the data is presenting itself seems to indicate that there was disingenuous behavior on the behalf of market makers and a number of hedge funds. To be seen, I guess.

[jrochkind1]

I mean, assuming manipulative self-interested disingenuous behavior on the part of market makers and hedge funds on a daily basis is usually a safe bet. Also on the part of nearly anyone interacting with the stock market who has the power to do it. It's kind of the whole game. True, that may not be how they teach it to you in high school.

[arawde]

Citation?

[captainarab]

It's in the logs, go see for yourself? GME purchases blocked this morning on apps where Citadel is the clearing house.

SOMEONE proceeds to ladder short sell GME to cause a massive price dump.

Users are margin called from previously profitable positions (without being able to provide buying pressure needed to fight against a ladder short sell)

Shorts are able to unethically cover your position.

Read into this... it's all over the news and verifiable with documentation from various regulatory agencies.

[hems27]

Citadel is not a clearing house...