Trades aren’t settled instantly. => No need to settle, even if the value comes down during the regular hours, margin trigger (based on automatic algorithm with formula) will happen automatically and sell the stock.
This margin rule and formula is for all brokers in USA and all brokers make this algorithm work automatically.
Every investor signed and agreed for such automatic sale as a part of margin agreement. if you have one from your broker, you can read the margin agreement (we mostly ignore the same way we sign mortgage documents) !
It happened in flash crash 2010 (2010 flash crash - Wikipedia ), trillions lost by margin auto sale and Citi bank crashed to cents within 5-10 mins. No one was able to reconcile the details !
There are levels of autosale. First level, margin call message (email,text…etc) will be issued. Second level, when value dips deeper than first level, auto sale happens.
I am convinced that I have been right all along. The people that believe in Bitcoin Tesla GME and other liar ideas are basically anarchists. They don’t care about fundamentals. They don’t believe in these bullshit companies… they just hate the system so much they are basically suicide bombers. Scary stuff. Like Trumpers. Religious fanatics.
Interesting. I’ve thought the same way about the people who supported DJT for the last four years. In a twisted way the capitol riot was validating (oh look, I wasn’t delusional – these people really are crazy!).
GME and Bitcoin definitely have a ‘tear it all down’ aspect to them. Not so sure about Tesla…there are altruistic and ‘coolness’ factors that I think are bigger drivers than rebellion against the system.
I think people underestimate how much Wall Street / hedge funds are hated. My wife is pretty conservative and would lean R (if not for Trump) but was very supportive of the takedown of the people shorting GME. She was cheering them on
It shouldn’t be possible to short over 100% of shares. By definition, a short borrows shares to sell them. How are they borrowing shares that don’t exist? That’s what the SEC should be investigating and handing out punishments.
It’s the same issue that sparked the financial crisis when hedge funds were allowed to buy multiple CDS on the same MBS. I thought congress passed hundred or thousands of pages of regulations and setup a whole new government agency to better protect us? I’m sure they won’t let this “opportunity” go to waste to pass legislation and declare that they’ve helped us again.
Oh, and Pelosi bought a bunch of TSLA calls between Biden winning and his inauguration. So expect her to hide shove favorable EV stuff into these bills being put together.
Of course Barron’s, fox, business insider and some other business publications covered it. Some how I’m not seeing CNN, NBC, CBS, or ABC covering it. I can’t imagine why not. Wouldn’t they want their viewers to be informed, since they claim their viewers are so much better informed?
The hedge funds over exposed in shorts have to cover tomorrow. They are probably liquidating their long positions to cover their short positions. Since the funds all seem to be long in the same basket of mega caps and cloud stocks together they are pulling down the index as their longs liquidate.
They should break up Citadel. Any broker filling through citadel put the kibosh on buying today so that the downstream citadel hedge funds can cover. The only ones allowing business as usual were ones that didn’t use citadel like Fidelity.
The idiocy is these guys are just greedy. Given the opportunities to cover this week with all the trading halts and what not, they instead covered some and then took new short positions planning to make money when this eventually goes down again. That’s why the short float is now back at 120% and only 75000 shares at 33% interest is left to loan around. They all deserve to be bankrupted even if it pulls the whole market with it down for a few weeks
This is nothing to do with HF issues, market started on correction. With the way it goes, appx 14% to 23% I am guessing and is not going to end.
Expecting this, I have moved everything to cash mode and secure covered call for MRNA and BNTX today !
IIRC, They already funded Melvin capital 2.75B to come of of shorting and they did.
You can try scaring me any numbers of times, I will laugh at your ignorance of the subject !
As I said already, I have done more than enough research on MRNA and BNTX, then put my money into those baskets.
It is next 2-3 weeks fun, I am fully prepared ahead of this down time ! Believe it or not, such volatility gives me more money than drop in my values !
Expecting tomorrow down (around 11 am I posted Safety…safety…market not good shape - and then deleted), I just took some SPY puts already…
You are probably right long term. Was talking about next few weeks
The stupid insane shorting came back to bite citadel & co funds. That’s why all the shenanigans today. The rate GME and other meme stocks was climbing this morning they would have had to delta hedge for the calls they wrote tomorrow. So they had to suppress prices
This was planned on last Thursday/Friday. I sensed the issue and took entire retirement accounts into cash mode. Yesterday drop confirmed my decision to move to cash was right !
Today, I closed all my calls, cashed out and took all pre-caution for possible crash, may be 10%,15% or 25% which I do not know.
