US Brokerages Block Trading of GME among others


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Not sure how interested you all are in the stock market

https://www.google.com/amp/s/www.cnet.com/google-amp/news/robinhood-app-td-ameritrade-restrict-trading-of-gamestop-amc-stock/

This is a tale of an outdated mall based retailer. Stock speculation, blatant market manipulation from large firms, an activist investor, and one borderline insane online trading forum.

 

What are your thoughts?

 

Edit: Right, I should probably disclose that I currently am holding gme. I do have an interest in the stock.

 

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19 minutes ago, Bijan said:

Not sure if true, but one trading platform operator claims it is due to costs of 2-day stock settlement on such volatile stocks:

https://finance.yahoo.com/video/heres-why-robinhood-restricting-users-173049721.html

 

Absolutely, it's incredibly expensive to cover the options trades on these stocks. With that said the company which handles robinhood's transactions also just bailed out one of the hedge funds with a short position in gamestop. They have a vested interest in the stock tanking. Besides, as a market maker they have a duty to maintain the market, they aren't allowed to do this kind of thing. Especially not before monthly options expire. They cant take action to protect their bottom line, atleast not like this...

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My personal opinion is big organizations such as oh Berkshire Hathoway amongst several others have the capability to do the exact same thing and there are these massive players out there that can and do manipulate stock and bonds of a company through various methods, but they do so in a not so public mannor. Now if these current investors conduct themselves in a manner that break any current NASD or SEC rules then I would say shut them down and throw the rulebook at them. What I suspect through is the big boys are looking at this group of investers as not being bound by the brokerage rules with an in house SEC compliance chained to their leg and see the potential of them being a wrecking ball. As someone said earlier that there is always someone left holding the bag when the music stops. If there are not rules that these guys are breaking now, you can sure bet there will be some written to prohibit these activities in the future. 

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It's rigged for the hedge funds and everyone else can pound sand.  It show what a hypocrisy trading platforms and the markets are.  I would dump Robinhood's account real quick if I was using it.

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35 minutes ago, BrightonCorgi said:

It's rigged for the hedge funds and everyone else can pound sand.  It show what a hypocrisy trading platforms and the markets are.  I would dump Robinhood's account real quick if I was using it.

I sure will once I'm out of this position, not sure which broker to switch to for now. I guess fidelity

Edited by Thatsze
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3 hours ago, BrightonCorgi said:

It's rigged for the hedge funds and everyone else can pound sand.  It show what a hypocrisy trading platforms and the markets are.  I would dump Robinhood's account real quick if I was using it.

Exactly. They are the epitome of "Rules for thee, not for me."

 

Wondering if there will be anymore that follow.

https://thehill.com/policy/healthcare/536320-class-action-lawsuit-filed-against-robinhood-for-restricting-trading

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A. Funds aren’t settled instantaneously. There will be lots of liquidations of accounts when options expire. These brokers just don’t want to be left holding the bag. If one doesn’t like it, one should use a real brokerage instead of Robinhood. 

B. This wouldn’t happen with crypto. 

C. Blockchain is the future in these regards. Consumers will be able to make direct exchanges via smart contract blockchain like Uniswap. Will take out the middleman and be extremely secure. 

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2 hours ago, Cigar Surgeon said:

I sincerely hope the loss to the Hedge Funds is in the multi-billions of dollars tomorrow when all their short calls come due.

On top of the multiple billions they've already lost right? ?

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4 hours ago, benfica_77 said:

The big guys manipulate markets all the time. Here's an example...one of Coke's biggest expenses is aluminum for the pop can. So Coke starts buying up aluminum and stockpiling it over a large period of time. Than they flood the market with cheap aluminum bringing the market price down considerably and than they buy way more aluminum and a considerably cheaper price.  Straight up market manipulation and surprise surprise nothing happened to them. 

This happens constantly, just this time the big player got caught with his pants down and they are crying wolf. Boohoo hedge funds boohoo 

This is so true... Well said

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I have a dumb question: as a lowly Island boy, unaccustomed to the finer details of this thing you call the stock market? (especially when this s**t happens), is this gonna be really bad for my 401k? Or should I say, for the average citizen’s 401k? Thanks for putting up with me, by the way.

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30 minutes ago, BrightonCorgi said:

No one will be punished.

Your right. Bonuses more likely. 

 

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1 hour ago, Islandboy said:

I have a dumb question: as a lowly Island boy, unaccustomed to the finer details of this thing you call the stock market? (especially when this s**t happens), is this gonna be really bad for my 401k? Or should I say, for the average citizen’s 401k? Thanks for putting up with me, by the way.

Shouldn't affect people who are not invested in these stocks and not shorting these stocks.

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