trading 212 on your mobile

IdleRich

IdleRich
If you own stocks in (say) game spot and they dip to being worth minus 10 million dollars does that effect your actual balance or is it all notional until you choose to sell it?

Does it just mean that you lose what you initially invested? (Because the stocks aren't worth shit.)
Stock can't go negative.
By buying and selling shares you can only lose your investment. If you buy and (particularly) sell options you can lose many times your original investment cos you arr promising to sell someone shares at a particular price which might be much lower than the price that it is trading... the result being that you have to buy them at the high price just to keep your deal. And as there is no limit to how high it climbs your potential loss is unlimited.
 

catalog

Well-known member
So the deal being kept is quite a sacrosanct thing? And this is what the US government are now trying to renege ON? probably more complicated, I don't really understand this...
 

Leo

Well-known member
So the deal being kept is quite a sacrosanct thing? And this is what the US government are now trying to renege ON? probably more complicated, I don't really understand this...

as far as has been reported, the government isn't doing anything. it's all due to pressures from Wall Street on robinhood and other stock traders to place restrictions or halt trading on the apps.
 

catalog

Well-known member
There's the anon screenshot that shiels or version posted? The Robin Hood worker saying the white house called?
 

Leo

Well-known member
good read, disillusioned former bond trader lays things out well.

Robinhood Banning GameStop Proves the Free Market Is a Lie

Either you believe in the free market or you don’t....I wish the hedge funds would stop doing what they’re doing. But if it’s legal for the hedge funds, you can understand why people on Reddit would be outraged when people act like it’s not legal for them to do the same.

The ideology of Wall Street is libertarianism. It’s that people have agency and should be allowed to exercise it. It’s a non-paternalistic worldview. It’s “Everyone is out for themselves, and the reason we make money isn’t because we’re more selfish, it’s because we’re smarter.” If that’s your attitude, fine. I don’t like that the corrupt attitude of the rich has trickled down. But if the rich are going to be able to play this game, then why are you surprised when the less rich start playing?

The Reddit crowd embraced the cynicism of Wall Street, which treats everything just like a game, and they’ve taken it up and said, “Okay, this is a game. And I found a bug in the game.” They’re telling all their friends that there’s this game out there with a weak boss. And they’re going to attack that boss. Because they’re gamers. And gamers play.
 

RWY

Well-known member
It’s ok for third to make wild edgy generalisations about Turkish people on here because he is Turkish. Are you Turkish? Or an edgelord Vice writer?
Apologies, I wasn’t intending to offend anyone, especially not Third. Probably a sign that it’s time I took a break from here. Have fun guys.
 

143 I.Q. Magical Thinker

Bamber Clatscoigne
They have to do something, every bank is on the hook

So the end result of all of this is likely going to be that every single investment bank in the country with exposure to this risk, which could be every single investment bank in the country, is forcibly liquidated. It's an even worse situation for the banks than the housing crash because in 2008 their level of exposure was actually limited, in this situation it is theoretically unlimited.

*Chef's kiss*

We can end it now. We can end it forever.
 

wild greens

Well-known member
That was an incredible read.

So- can you short the banks? If you had 50k you could start a fund as a hobby and just liquidate. Insurance might be tricky but llps are allowed to trade, no..?
 

IdleRich

IdleRich
So the deal being kept is quite a sacrosanct thing? And this is what the US government are now trying to renege ON? probably more complicated, I don't really understand this...
As I understand it they're not reneging on deals, they are just stopping further trading through their platforn - that's not fair though cos while the individuals can't trade, the institutions still can.
 
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