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by jinkyu 1961 days ago
RH may have ran out of cash but they were still trading all non-meme stocks. how does this author explain that?
2 comments

The collateral requirements are way higher for stocks that are heavily shorted, if I understand it all correctly. Meaning RH had to front more money for these stocks to continue allow trading during the 2 day waiting period for executions to fall through.
It’s called DTCC collateral requirements. These are things you should know about if you are going to try to profit from a short squeeze.