Does anyone know if they (Robinhood and other brokers) were
liquidating stock on margin only or if they were liquidating stock
purchased with cash? Because I think it makes a difference-
stock bought with borrowed money or stock bought with client money.
The former is bad, the latter inexcusable (IMO).
I don't know, yes liquidating if someone was on margin makes
sense given the volatility of the stock and potential to have huge
swings that could bankrupt the customer where the brokerage would
have to cover. However I have seen reports from people who say
their positions were liquidated who were not using margin who were
long shares outright not on margin, If true that's a big problem,
but I don't know if that's true or not.
in fact I'm scared even talking about it here for fear BPT will
get flagged by Google or something and have traffic blocked, that's
the state we are in.
Reminds me of the great Star Wars scene where Grand Moff Tarkin
is asked "how will the Emperor maintain control" and he responds
"fear, fear of this battle station". Strange parallels, life
imitating art, or whatever!
Does anyone know if they
Google removing ratings - off market topic
Posted by pep8261 on 29th of Jan 2021 at 11:08 am
Does anyone know if they (Robinhood and other brokers) were liquidating stock on margin only or if they were liquidating stock purchased with cash? Because I think it makes a difference- stock bought with borrowed money or stock bought with client money. The former is bad, the latter inexcusable (IMO).
I don't know, yes liquidating
Posted by matt on 29th of Jan 2021 at 11:13 am
I don't know, yes liquidating if someone was on margin makes sense given the volatility of the stock and potential to have huge swings that could bankrupt the customer where the brokerage would have to cover. However I have seen reports from people who say their positions were liquidated who were not using margin who were long shares outright not on margin, If true that's a big problem, but I don't know if that's true or not.
in fact I'm scared even
Posted by matt on 29th of Jan 2021 at 11:15 am
in fact I'm scared even talking about it here for fear BPT will get flagged by Google or something and have traffic blocked, that's the state we are in.
anyway market weakening more
Reminds me of the great
Posted by jared95 on 29th of Jan 2021 at 11:50 am
Reminds me of the great Star Wars scene where Grand Moff Tarkin is asked "how will the Emperor maintain control" and he responds "fear, fear of this battle station". Strange parallels, life imitating art, or whatever!
Posted by matt on 29th of Jan 2021 at 11:54 am