So my limited understanding of the situation is that the people who are hardcore on shorting have two options:ahahaha 418
So my limited understanding of the situation is that the people who are hardcore on shorting have two options:
1) keep on shorting, and hope it all pays off in the end. As the price goes up, the need to short increases, driving prices even higher in a vicious cycle.
2) bail now and take a massive loss
The first very much sounds like a sunken cost fallacy...
I'm sure there's more to it. Can anyone explain?
Not even sure that they can keep shorting, it's like if you borrowed from Vinnie to pay Jesse, and now both of them are knocking on your door to break your kneecaps.So my limited understanding of the situation is that the people who are hardcore on shorting have two options:
1) keep on shorting, and hope it all pays off in the end. As the price goes up, the need to short increases, driving prices even higher in a vicious cycle.
2) bail now and take a massive loss
The first very much sounds like a sunken cost fallacy...
I'm sure there's more to it. Can anyone explain?
By "retail buyers" you mean people who are looking to buy the stock and hold it for some period of time, as opposed to someone making an active bet (short) against GME?shorters are fucked. The total shorted is 134% (probably more now) of total float stock. There isn't enough stocks to cover all the shorts. I hope GME doesn't issue stocks to bail out short sellers.
Fucking brokerages are slowing retail buyer down, that is bullshit.
By "retail buyers" you mean people who are looking to buy the stock and hold it for some period of time, as opposed to someone making an active bet (short) against GME?
ahahaha 418
In the last hour it went from ~$400, down to $120, and is now ~$250.can someone explain this post to me? I missed something. ....I also have no idea what "418" means. oh stock price. NVM.
wasn't it 438 overnight?
I guess the question I have is before all of this, why would anyone choose to buy GME stock? They are going to die a slow death. Are there folks out there who think they have a future? It seems a sure bet that their stock will continue to drop and assume that is why the hedge funds felt no risk shorting them?retail as in non institution. so you, me and all the people on WSB.
I'm assuming that was the stock price at one point. Out of curiosity I took a look at the last 5 days of trading and the stock is comically volatile.can someone explain this post to me? I missed something. ....I also have no idea what "418" means.
I feel like no matter what happens the lawsuits that come out of this are going to be bananas.
Indeed, hedges were so sure of their demise they overbeat the dead horse. Reddit necromancy'd it back from the dead and it started eating the hedge funds.I guess the question I have is before all of this, why would anyone choose to buy GME stock? They are going to die a slow death. Are there folks out there who think they have a future? It seems a sure bet that their stock will continue to drop and assume that is why the hedge funds felt no risk shorting them?
I feel like no matter what happens the lawsuits that come out of this are going to be bananas.
Since users don't pay commissions, RH makes its money from hedge funds giving them kickbacks for front running orders. So when you buy a stock, RH will route it to Citadel, which will buy it first, then sell to you for a bit more. Citadel pays RH for this, they are RH's paying customer, not the users. So if RH is doing what's right for its customers, screwing its users.I think they've calculated that they're more likely to survive the lawsuits and SEC investigations than they are going to be able to survive the shorts blowing up in their face. And they're probably right, a few campaign contributions will probably buy them out of the worst of it.
I'm assuming that was the stock price at one point. Out of curiosity I took a look at the last 5 days of trading and the stock is comically volatile.
9:58am today: 468/share
11:18: 126/share
11:42: 243/share
Now: 207
The higher the stock stays, the more screwed everyone shorting GME is
I think they are providing overall user data but I doubt their business model is based on front running as that’s a crime.Since users don't pay commissions, RH makes its money from hedge funds giving them kickbacks for front running orders. So when you buy a stock, RH will route it to Citadel, which will buy it first, then sell to you for a bit more. Citadel pays RH for this, they are RH's paying customer, not the users. So if RH is doing what's right for its customers, screwing its users.
I'm kinda that. I bought just for a laugh and a fuck you!I sincerely doubt the average person buying GME stock is doing it with the intention of losing money.
I think they are providing overall user data but I doubt their business model is based on front running as that’s a crime.
Citadel is not paying Robinhood to execute trades for no reason. I am sure it's structured in a legal way, but the effect is the same, they skim off those free trades and pay Robinhood for the privilege. So when Citadel, which is the source of RH's revenue is short and RH's users who don't pay commissions are long a stock, RH is going to serve its actual paying customer.Market makers, such as Citadel Securities or Virtu, pay e-brokers like Robinhood for the right to execute customer trades. The broker is then paid a small fee for the shares that are routed, which can add up to millions when customers trade as actively as they have this year.
Here's how Robinhood is raking in record cash on customer trades — despite making it free
Robinhood is raking in more money than ever on customer trades as new investors flood the stock market during the pandemic.www.cnbc.com
Citadel is not paying Robinhood to execute trades for no reason. I am sure it's structured in a legal way, but the effect is the same, they skim off those free trades and pay Robinhood for the privilege. So when Citadel, which is the source of RH's revenue is short and RH's users who don't pay commissions are long a stock, RH is going to serve its actual paying customer.