Noobie here. Can somebody explain to me how this whole short thing works? I understand what the Hullabaloo is all about but for some reason the making money on a short sell has never made sense. I understand you are hoping the stock tanks but how is that making you money?
Webull has opened all trading and takes the side of retail investors: Exclusive: Webull Opens AMC, GameStop For Buying And Selling Amid Marketwide Trading Ban Users can now buy and sell all stocks on the Webull trading platform, the company's CEO tells Benzinga. · 2021/01/28 09:12 GMT-06:00 Users can now buy and sell all stocks on the Webull trading platform, the company's CEO tells Benzinga. What Happened: Webull was one of several brokerages and trading platforms that halted new purchases on shares of high flyers like GameStop Corp (NYSE:GME) and AMC Entertainment Holdings (NYSE:AMC). CEO Anthony Denier appeared in a phone interview earlier Thursday on the Zingernation Power Hour. “Without clearing firms, investors will not be able to sell once in positions,” Denier said, calling Thursday’s events a "complete market breakdown." Denier called what's happened with Reddit and the WallStreetBets subreddit “a good thing” and highlights the power of chat rooms and technology. “We love it, this is the reason we started Webull," he said. See Also: Here's Which Brokerages, Platforms Have Blocked Trading In Volatile Stocks Why It's Important: Citadel was called one of the largest market-makers by Denier and a possible contributor to Thursday’s events. Clearinghouses didn’t raise rates fast enough before the collapse of Lehman Brothers, according to Denier. He said the broker's clearing firms raised collateral rates related to GameStop on Thursday. The CEO said he was angry when he got a call Thursday from the clearing firm and had to stop supporting transactions in GameStop and AMC Entertainment. Denier told Benzinga his company was working hard to open trading on the halted names as quickly as possible. Price Action: Shares of AMC and GameStop are up about 20% since Webull lifted the buying ban.
I borrow shares I DON'T OWN to sell to other person at 100 dollars. That person pays me 100 dollars to me. *Time passes* I need to return the share I borrowed to sell initially. Well I am hoping when it comes time to do this, the shares are cheaper. So I buy the shares on the open market at let says, 50 bucks, to give back to the person I borrowed from. I made 100 initially, and just spent 50 bucks...net profit 50. If the stock price is higher than 100, now I got to spend money out of my pocket to buy the same share.
lol. No, I didn't get the sell-off my emo-trader-self wanted. Ah well. As for Robinhood, they're small potatoes from what I remember seeing last year. I think the average account there last year was something like $1000-$5000 or something (I may be mis-remembering that). Schwab's average client account is something like $300,000-$500,000, probably. I don't know what the breakdown is among things like bonds, etfs, equities, etc. I had an account with Robinhood back during their "beta" period, but closed it because I never used it, and they were mobile-only. What I thought would take down the stocks would be the closing of massive short positions OR big players saying "welp... let's make some money off of this GME garbage" and piling into that trade somehow by selling existing positions. If any of those happened, it happened in the last couple of days, I guess. Citron and Melvin, I believe, stated they were out of their short positions in GME since Tuesday or something, so that got me wondering how much of this selling is other big institutions trading against WSB or WSB trading against WSB for the most part. Who knows. It's all murky to me and I'm eager to see what kinda changes come from this.
If Robinhood allows trading on GME and AMC tomorrow, then lookout. Those hedge ****ers better hope they got their shorts taken care of, or they are in for a long next several days. If this didn’t work, they aren’t going to do it again are they. It grabbed way too much attention.
Yup. I mentioned that book years ago in this thread. None of this is unknown to people. Payment for order flow, co-located execution, front running, and the extent to which companies will go to get milli and microsecond advantages for order execution, etc. Just read the first chapter or two of the book and you'll understand how ignorant you may be about how a lot of this works.
Second paragraph : https://bbs.clutchfans.net/threads/...s-and-investing.149250/page-706#post-13391015
Interesting article for anyone who wants to read how Robinhood became the enemy: https://www.vice.com/en/article/qjp...-funds-like-citadel-its-users-are-the-product