|
|
|
|
|
|
by TheAlchemist
1958 days ago
|
|
|
“Therefore that's why all the exchanges had to suspend GME training” As far as I know, no exchange suspended trading in GME. It’s only some brokerage, due to collateral requirements and risks involved, that imposed limits on their clients. People should educate themselves about investing and trading before starting. I blame Robinhood for this circus - it’s pure gamification - I guess 90% of guys trading on it don’t understand what they doing, let alone what’s really happening when they hit this “buy” button. This is the point that should be investigated - do we really want people to be able to loose all their money in a matter of days and sometimes hours, trading options with leverage ? |
|
|
Some brokerages put a complete stop on trading the share - no buying or selling. Fair enough.
Others (this includes Robinhood, which I believe had the largest number of GME shareholders) stopped allowing purchases but continued to allow selling. One of their excuses is that they didn't want to take people's ability to exit their positions. This of course, played into the hands of anyone trying to cover their short, as it artificially increased the number of sellers compared to buyers.
Finally, Robinhood allegedly closed out positions of people who'd purchased GME "on margin" - the thing is, if you sell a share in company A, and buy a share in company B on the same day, you might be buying shares in company B on margin, because it takes two days to settle company A's share sale. So, even though you may think you bought shares of company B fair and square, RH could still have closed your margin position.