slickpete83
Active Member
my rant at the misinformation in the media & from newbie investors regarding gamestop
Many traders are mad at Robing Hood for limiting GME trades. What they don't realize is the clearinghouse is requiring more collateral from RH due to the risk of clients trading GME. It's not a conspiracy to make hedge funds rich. The misinformation out there is astounding. They can't just raise margin. They have SEC net capital obligations. Raising margin would just put them at more risk and huge regulatory trouble with the SEC. If a trader gets wiped out due to a fast-moving market, like GME, there is nothing to liquidate. They will owe money if a trade moves against them in a bad way. This is why a clearinghouse is so important. It ensures a proper settlement of funds.
If Gamestop's $GME board was smart, they would issue a huge secondary to take advantage of issuing shares at this mega inflated price.
Many traders are mad at Robing Hood for limiting GME trades. What they don't realize is the clearinghouse is requiring more collateral from RH due to the risk of clients trading GME. It's not a conspiracy to make hedge funds rich. The misinformation out there is astounding. They can't just raise margin. They have SEC net capital obligations. Raising margin would just put them at more risk and huge regulatory trouble with the SEC. If a trader gets wiped out due to a fast-moving market, like GME, there is nothing to liquidate. They will owe money if a trade moves against them in a bad way. This is why a clearinghouse is so important. It ensures a proper settlement of funds.
If Gamestop's $GME board was smart, they would issue a huge secondary to take advantage of issuing shares at this mega inflated price.