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01-28-2021, 10:49 AM | #6886 | |
When pigs fly
Join Date: Nov 2010
Location: Kansas
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Posts: 3,326
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01-28-2021, 10:54 AM | #6887 |
The Seated Villain
Join Date: Apr 2007
Location: Seattle
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Posts: 10,689
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01-28-2021, 10:56 AM | #6888 |
Banned
Join Date: Jan 2013
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I bought into GME last night through RH but my orders were cancelled this morning.
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Posts: 53,803
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01-28-2021, 11:00 AM | #6889 | |
Sexiest Athlete
Join Date: Apr 2001
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Posts: 12,675
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1 0 |
01-28-2021, 11:01 AM | #6890 |
"You like to drink?"
Join Date: Jun 2006
Location: "I like to drink."
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It's allowed because the physical possessors of the stock being shorted will collect premiums at some point in the process.
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Posts: 43,913
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01-28-2021, 11:01 AM | #6891 |
Veteran
Join Date: Jan 2004
Location: Lawrence
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You aren't really "borrowing". You are entering a contract that gives you the option to execute a trade at a certain point for a certain price. Until that point happens, you don't "own" the stock at all, you just own the contract that says you can buy X amount of shares at a certain point. You can sell that contract and never buy a single share of actual stock.
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Posts: 1,121
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01-28-2021, 11:04 AM | #6892 | |
The Seated Villain
Join Date: Apr 2007
Location: Seattle
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Posts: 10,689
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01-28-2021, 11:06 AM | #6893 |
Sexiest Athlete
Join Date: Apr 2001
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Think of it as a kind of "predictive (or speculative) arbitrage".
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Posts: 12,675
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01-28-2021, 11:08 AM | #6894 |
Sexiest Athlete
Join Date: Apr 2001
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This price action today is absolutely fascinating...
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Posts: 12,675
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01-28-2021, 11:13 AM | #6895 |
Kind of a mod
Join Date: Aug 2005
Location: Donkey Land
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Posts: 52,338
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01-28-2021, 11:24 AM | #6896 | |
Veteran
Join Date: Dec 2006
Location: Indiana
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Posts: 4,579
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01-28-2021, 11:29 AM | #6897 |
When pigs fly
Join Date: Nov 2010
Location: Kansas
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In that sense though, whoever actually owns the equity...do they have say in what happens with it? For the duration that the stock is shorted, can the actual owner do anything with it? Or are they forced to hold until the contract is expired? Are their time limits for when a short has to be executed in?
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Posts: 3,326
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01-28-2021, 11:30 AM | #6898 |
2 Legit 2 Colquitt
Join Date: Sep 2010
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You guys, the price has not crashed yet. There is massive pressure pushing in both directions right now. As long as the outstanding shorts exceed 100% of float a squeeze remains likely. This is going to stay super volatile for the next week or so.
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Posts: 4,752
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01-28-2021, 11:30 AM | #6899 |
"You like to drink?"
Join Date: Jun 2006
Location: "I like to drink."
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No it's pretty clear from mainstream news coverage that this isn't Robinhood looking out for their users' interest. They're covering for the hedge funds who are getting BTFO by a bunch of barbarians instead of their Ivy-league educated, big moneyed competitors.
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Posts: 43,913
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01-28-2021, 11:34 AM | #6900 | |
2 Legit 2 Colquitt
Join Date: Sep 2010
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Posts: 4,752
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