Re: Stock market question for those in the know
[Re: Grandpa Trapper]
#7160921
01/29/21 06:17 PM
01/29/21 06:17 PM
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Joined: Mar 2007
Posts: 35,206 McGrath, AK
white17
"General (Mr.Sunshine) Washington"
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"General (Mr.Sunshine) Washington"
Joined: Mar 2007
Posts: 35,206
McGrath, AK
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Right after posting the above, I received this from my broker. It is right along the same line of the discussion on margin and volatility.
Interactive Brokers Securities Subject to Special Requirements Dear Client,
We are seeing unprecedented volatility in GME, AMC, BB, EXPR, KOSS and a small number of other U.S. securities that has forced us reduce the leverage previously offered to these securities and, in certain instances, limit trading to risk reducing transactions. IBKR currently has no restrictions on trading shares in those companies, and customers can open or close positions in those shares. Like many other brokers, IBKR placed options on certain of those stocks in closing only earlier this week. The plan is to lift those restrictions in an orderly manner while closely monitoring market conditions. To be clear, IBKR has not restricted clients’ ability to close existing positions in any of the U.S. securities subject to market volatility, and does not plan to do so.
The limits IBKR has placed have applied to all customers and were not limited to “retail clients” or any other group.
In order to keep you up-to-date on this fast-moving situation, we have put together a Knowledge Base site with current information on margin requirements and any trading restrictions for this group of securities. This site will provide the relevant information on the securities in one place, in addition to your existing ability to preview margin requirements prior to initiating a position and monitor them afterwards. Click here to review this Knowledge Base article.
We also invite you to visit the website for additional information regarding margin requirements and managing the risk of your portfolio
• For information on previewing margin requirements prior to order submission, click here. • For general information on margin and margin requirements, click here. • To monitor your portfolio risk using Risk Navigator, click here.
We understand that you may have experienced occasional market and systems delays or interruptions as a result of this week’s extraordinary volatility. Please be assured that IBKR is doing everything possible to keep you informed of developments that might affect your trading decisions. We appreciate your patience, and regret any inconvenience that you might have experienced over the past few days. Thank you for the trust and confidence that you continue to place in Interactive Brokers. Interactive Brokers Client Services Interactive Brokers LLC, member NYSE, FINRA, SIPC
Mean As Nails
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Re: Stock market question for those in the know
[Re: Steven 49er]
#7160942
01/29/21 06:28 PM
01/29/21 06:28 PM
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Joined: Mar 2007
Posts: 35,206 McGrath, AK
white17
"General (Mr.Sunshine) Washington"
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"General (Mr.Sunshine) Washington"
Joined: Mar 2007
Posts: 35,206
McGrath, AK
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Got to say I disagree with you Ken. If this squeeze would have went the other way those hedge funds would have had no problem taking that money.
If a short squeeze in a (This word is unacceptable on Trapperman) ant company like gme can bring the whole market down the market is flawed and the answer isn't more regulation.
Free market capitalism is dead Absolutely right. They would have taken the money and run. Don't misunderstand me. I'm all in favor of the little guy making a killing when he can. What I have a problem with is people claiming that someone did something illegal when we don't know that. As far as regulation goes...............I generally don't like it. On the other hand, without it the retail trader wouldn't have a prayer. I'm a lot older than you and can remember when the commission on a 100 shares of stock was over a hundred bucks. Today it's zero in many cases. The bid-ask spread used to be several dollars wide. Today it is only a penny or two for most things. The change from fractions to decimals further reduced that spread. Regulations that force specialists to make a two-sided market at all times means there is always a buyer or seller available. All these are the result of regulations and go a long way toward leveling the playing field between professional and retail traders
Mean As Nails
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Re: Stock market question for those in the know
[Re: Grandpa Trapper]
#7160965
01/29/21 06:40 PM
01/29/21 06:40 PM
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Joined: May 2010
Posts: 10,529 MN
Steven 49er
trapper
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trapper
Joined: May 2010
Posts: 10,529
MN
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A lot older than me?
I'll be 51 in a couple weeks. You're only twice as old as I am...
"Inflation is always and everywhere a monetary phenomenon". Milton Friedman.
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Re: Stock market question for those in the know
[Re: Grandpa Trapper]
#7160987
01/29/21 06:58 PM
01/29/21 06:58 PM
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Joined: Aug 2011
Posts: 1,621 Ohio
newtoga
trapper
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trapper
Joined: Aug 2011
Posts: 1,621
Ohio
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Thanks for the info white17. It explains a lot.
lifetime member NTA, OSTA, GTA
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Re: Stock market question for those in the know
[Re: Grandpa Trapper]
#7161233
01/29/21 09:19 PM
01/29/21 09:19 PM
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Joined: Dec 2006
Posts: 4,966 PA
elkaholic
trapper
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trapper
Joined: Dec 2006
Posts: 4,966
PA
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Ken, I'm not sure if he had a low sell price or not. I've heard rumblings of others having the same issue with them selling their shares off. I do know he bought it back in Nov. and tried to get me to buy. But they're closing Game Stops around here left and right so I was very leery of it. He lives for the thrill of buying things and seeing what happens.
He bought into Tesla real early and bought heavily. He's been grinning like the Cheshire cat since it split and started moving up.
Millions of trees die every year to print environmentalist publications
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Re: Stock market question for those in the know
[Re: elkaholic]
#7161329
01/29/21 10:07 PM
01/29/21 10:07 PM
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Joined: Mar 2007
Posts: 35,206 McGrath, AK
white17
"General (Mr.Sunshine) Washington"
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"General (Mr.Sunshine) Washington"
Joined: Mar 2007
Posts: 35,206
McGrath, AK
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Ken, I'm not sure if he had a low sell price or not. I've heard rumblings of others having the same issue with them selling their shares off. I do know he bought it back in Nov. and tried to get me to buy. But they're closing Game Stops around here left and right so I was very leery of it. He lives for the thrill of buying things and seeing what happens.
He bought into Tesla real early and bought heavily. He's been grinning like the Cheshire cat since it split and started moving up.
That's a good lick on Tesla. I'd be unloading that too if I was in his shoes. ))))))))))) Not knowing your cousin it is impossible to say for sure but a lot of people, especially those who are not active traders, are confused by certain different order types. He may have had a sell stop active just for safety. Or it could have been a stop limit. The two seem like they would both work but they don't work the same. Many people get burned by little things like that. But in this case my guess would be that RH liquidated his shares because of the aggregate maintenance requirement was not met when the value of GME in his account dropped. What many people don't understand is that the broker is on the hook if an investor goes broke or can't come up with enough cash to meet his obligations. If the broker fails , then the clearing corporation is on the hook. Pretty soon the entire system could have severe problems meeting the trillions of dollars per day that are being exchanged in cash and securities. The brokers have to maintain adequate capital to meet collateral requirements, and they can't use client funds . It has to be their own. That is why RH shut down some BUY transactions yesterday ...it allowed them time to borrow a couple billion to improve their capital requirements. Selling on RH was still allowed because their only obligation there is to deliver the stock to the buyer's broker. They don't need cash to do that. Personally, I can't imagine GME doing anything but entering bankruptcy eventually. They are like the buggy whip makers of the 19th century. Regardless of how this ends I can't see many smiles among the Reddit or RH users
Mean As Nails
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Re: Stock market question for those in the know
[Re: Grandpa Trapper]
#7161731
01/30/21 07:47 AM
01/30/21 07:47 AM
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Joined: May 2010
Posts: 10,529 MN
Steven 49er
trapper
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trapper
Joined: May 2010
Posts: 10,529
MN
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Robin Hood came out with a new list Friday of securities that are being restricted on their platform.
American Airlines Group Inc (NASDAQ: AAL): 1 share, 10 options Aurora Cannabis (NYSE: ACB): 1 share, standard limits First Majestic Silver Corp (NYSE: AG): 1 share, standard limits AMC Entertainment (NYSE: AMC): 1 share, 10 options Advanced Micro Devices Inc (NASDAQ: AMD): 1 share, standard limits BlackBerry Ltd (NYSE: BB): 1 share, 10 options Bed Bath & Beyond Inc (NASDAQ: BBBY): 1 share, 10 options BYD Co (OTC: BYDDY): 1 share Beyond Meat (NASDAQ: BYND): 1 share, standard limits Churchill Capital Corp IV (NYSE: CCIV): 1 share, standard limits Clover Health (NASDAQ: CLOV) 1 share, standard limits Curis (NASDAQ: CRIS): 1 share, standard limits Castor Maritime Inc (NASDAQ: CTRM): 5 shares Express Inc (NYSE: EXPR): 5 shares, 10 options EZGO Technologies (NASDAQ: EZGO): 5 share General Motors Corporation (NYSE: GM): 1 share, standard limits GameStop Corp: 1 share, 5 options Gran Tierra Energy (NYSE: GTE): 5 share, standard limits Hims & Hers Health (NYSE: HIMS): 1 share, standard limits Inovio Pharmaceuticals Inc (NASDAQ: INO): 1 share, standard limits Social Capital Hedosophia Holdings Corp V (NYSE: IPOE): 1 share, standard limits Social Capital Hedosophia Holdings Corp VI (NYSE: IPOF): 1 share, standard limits Jaguar Health Inc (NASDAQ: JAGX): 5 share, standard limits Koss Corp (NASDAQ: KOSS): 1 share Lianluo Smart (NASDAQ: LLIT): 5 share Moderna Inc (NASDAQ: MRNA): 1 share, standard limits Naked Brands Group (NASDAQ: NAKD): 5 shares The9 Ltd (NASDAQ: NCTY): 1 share Nokia Oyj (NYSE: NOK): 5 shares, 10 options Novavax Inc (NASDAQ: NVAX): 1 share, standard limits Opendoor Technologies Inc (NASDAQ: OPEN): 1 share, standard limits Rocket Companies Inc (NYSE: RKT): 1 share, standard limits RLX Technology (NYSE: RLX): 1 share, standard limits Rolls-Royce Holdings (OTC: RYCEY): 5 shares, standard limits Starbucks Corp (NASDAQ: SBUX): 1 share, standard limits Shoals Technologies Group (NASDAQ: SHLS): 1 share Siebert Financial Corp (NASDAQ: SIEB): 1 share, standard limits iShares Silver Trust (NYSE: SLV): 1 share, standard limits Sundial Growers Inc (NASDAQ: SNDL): 5 shares, 10 options Direxion Daily Semiconductor Bull 3x Shares (NYSE: SOXL): 1 share, standard limits Sorrento Therapeutics Inc (NASDAQ: SRNE): 1 share, standard limits Star Peak Energy Transition Corp (NYSE: STPK): 1 share, standard limits Tengasco (NYSE: TGC): 5 shares Tian Ruixiang Holdings (NASDAQ: TIRX): 1 share Tootsie Roll Industries (NYSE: TR): 1 share, 10 options Trivago (NASDAQ: TRVG): 55 shares, 10 options Workhorse Group (NASDAQ: WKHS): 1 share, standard limits Qualtrics International (NASDAQ: XM): 1 share, standard limits Zomedica Corp (NYSE: ZOM): 5 shares
Last edited by Steven 49er; 01/30/21 07:49 AM.
"Inflation is always and everywhere a monetary phenomenon". Milton Friedman.
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Re: Stock market question for those in the know
[Re: Kansas Cat]
#7161755
01/30/21 08:30 AM
01/30/21 08:30 AM
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Joined: Feb 2010
Posts: 19,720 pa
hippie
trapper
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trapper
Joined: Feb 2010
Posts: 19,720
pa
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I am a little confused Hippie. What wrongdoing has the average buy and hold investor committed? Robin hood taking it apon themselves to halt trading which killed the rally, for their own well being. If what was happening were illegal there are regulators and the SEC to handle it. Second would be big tech yet again using censorship by shutting down chat rooms. The average buy and hold investor probably didn't know their stock had been "borrowed" and sold by a hedge fund that didn't have the money to buy it back. That's why Robin hood shut it down. It had to have been done in a way that the stocks had to be returned to their owners or the hedge funds could/would just give the owner the money they sold them for, not market price and say sorry, in the fine print it says we can sell at our discretion.??
Last edited by hippie; 01/30/21 11:54 AM.
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Re: Stock market question for those in the know
[Re: Grandpa Trapper]
#7162095
01/30/21 01:15 PM
01/30/21 01:15 PM
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Joined: May 2011
Posts: 1,405 Kansas
Kansas Cat
trapper
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trapper
Joined: May 2011
Posts: 1,405
Kansas
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This type of scenario is not new. It happened several times last spring. I think JCPENNEY was one of the companies that mysteriously spiked and just as quickly crashed. The mountains of money injected into the economy made this type of trade unnecessary because there was instantly a whole universe of stocks to put your money in. Check out the charts on a few midstream oil companies.
Last edited by Kansas Cat; 01/30/21 01:18 PM.
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Re: Stock market question for those in the know
[Re: Grandpa Trapper]
#7162125
01/30/21 01:27 PM
01/30/21 01:27 PM
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Joined: Feb 2010
Posts: 19,720 pa
hippie
trapper
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trapper
Joined: Feb 2010
Posts: 19,720
pa
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Elon Musk tweeted......
You can't sell a house you don't own.. You can't sell a car you don't own.. But evidently you can sell stock you don't own.
I'm talking about the principle of this, not getting into every single stock offered.
Last edited by hippie; 01/30/21 01:28 PM.
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