Trading the stockmarket (NO Referrals)

randomshenans · 28 Jan 2021 at 14:14

booyaka said:
Tanking now $325 before opening

Need those diamond hands.

randomshenans · 28 Jan 2021 at 14:15

Martynt74 said:
AMC, BB and NOK are around 20%-30% down now too. I presume because no-one can actually buy the shares to prop the price up?

$AG up 49% pre market

unwashed potato! · 28 Jan 2021 at 14:15

Tweek_1984 said:
don't believe it because if Melvin had covered their shorts the price would have

Can you explain how this works. I understand they need to buy back the stocks, but it's been borrowed more than is available.

Who are they buying them back from? We there's loads of people who currently own them, if they don't have a limit set, how are these shares being bought? I assume its just that such volume on its own will start pushing the price up and up and up, so those with limits are then realized, but it will leave those that are waiting too long with no one willing to buy from them and then a likely crash?

As its 130 percent of shares they borrowed, how do the return more share than they have.

Minusorange · 28 Jan 2021 at 14:19

https://twitter.com/x/status/1354792600004386818

Funny how nothing like this was done in 2008

Martynt74 · 28 Jan 2021 at 14:20

Melvin aren't the only one with shorts, i think they held around 10% of the short positions (from memory)

413x · 28 Jan 2021 at 14:23

So it is Tanking at open. Makes sense.
I was shocked it went up in pre market as much as it did

dwarf · 28 Jan 2021 at 14:24

Apex said:
Can you explain how this works. I understand they need to buy back the stocks, but it's been borrowed more than is available.

Who are they buying them back from? We there's loads of people who currently own them, if they don't have a limit set, how are these shares being bought? I assume its just that such volume on its own will start pushing the price up and up and up, so those with limits are then realized, but it will leave those that are waiting too long with no one willing to buy from them and then a likely crash?

As its 130 percent of shares they borrowed, how do the return more share than they have.

I believe it's over 100% because of naked short selling. I don't fully understand but essentially this is where you enter a short position against a stock but neither you or the broker actually own the underlying stock. It's supposed to be illegal but is still used by brokers to maintain liquidity on options through shady practices.

The idea is to just hold the stock until you can name your price, theoretically unlimited as there's not enough floating to cover the shorts. Eventually some firms holding the shorts will go bankrupt and won't need to fulfil their obligations and the market will return to normal.

kakarott · 28 Jan 2021 at 14:24

I think some people got scared and started selling. Shame can't buy right now.

413x · 28 Jan 2021 at 14:25

kakarott said:
I think some people got scared and started selling. Shame can't buy right now.

That's how pump and dumps work
If it does tank like its showing at present its almost identical to crypto pump+dump.

Granted there's dodgy stuff on exchanges.

Martynt74 · 28 Jan 2021 at 14:26

Woohoo, T212 have finally applied my funds from 2 weeks ago!

Trusty · 28 Jan 2021 at 14:26

Apex said:
Can you explain how this works. I understand they need to buy back the stocks, but it's been borrowed more than is available.

Who are they buying them back from? We there's loads of people who currently own them, if they don't have a limit set, how are these shares being bought? I assume its just that such volume on its own will start pushing the price up and up and up, so those with limits are then realized, but it will leave those that are waiting too long with no one willing to buy from them and then a likely crash?

As its 130 percent of shares they borrowed, how do the return more share than they have.

They haven't borrowed more than is available. They've borrowed more than the float.

Example.

Max shares = 100m
Float (circulating supply) = 50m
restricted shares (majority shareholders/owners/employees) = 50m

They've borrowed from some majority shareholders basically.

unwashed potato! · 28 Jan 2021 at 14:26

kakarott said:
I think some people got scared and started selling. Shame can't buy right now.

This is the issue. If all you can do is sell, and never buy, the price can't go up. And when it drops so quick, it will snow ball.

unwashed potato! · 28 Jan 2021 at 14:27

Trusty said:
They haven't borrowed more than is available. They've borrowed more than the float.

Example.

Max shares = 100m
Float (circulating supply) = 50m
restricted shares (majority shareholders/owners/employees) = 50m

They've borrowed from some majority shareholders basically.

Got it thanks.

arknor · 28 Jan 2021 at 14:30

Apex said:
This is the issue. If all you can do is sell, and never buy, the price can't go up. And when it drops so quick, it will snow ball.

could someone should start a lawsuit against t212 for putting the customers interests last.
it's almost certain t212 loaned the shares to hedgefunds etc and are worried they won't get them back

can't be a coincidence that all the retail investor platforms do the same thing on the same day.

they are basically trying guarantee everyone who holds shares makes a loss? so they don't

Gaygle · 28 Jan 2021 at 14:30

Ready for the internet to go down in 3....2...

booyaka · 28 Jan 2021 at 14:32

Halted immediately at 300

Martynt74 · 28 Jan 2021 at 14:32

arknor said:
could someone should start a lawsuit against t212 for putting the customers interests last.
it's almost certain t212 loaned the shares to hedgefunds etc and are worried they won't get them back

I'm not sure it's T212 that's the issue as it states it's their intermediary that's put the restrictions on. Presumably they'll have a clause in their T&C's to state that's not their fault.

englishpremier · 28 Jan 2021 at 14:35

Jokester said:
So is this some sort of coordinated pump and dump thing like crypto but with stocks?

Bit confused to what’s going on.

DarrenM343 said:
People gambling on a **** stock with low liquidity? . Pump and dumps moved to stonks

Are you two sure you understand what is going on? The underlying business isn't too important, just like it wasn't particulaly important when the investment firms shorted the **** out of it.

Hyburnate said:
And Tesla and Apple whom had overall pretty good reports are down on the late and early markets - this is how they work - it shows the power of GME!

Tesla missed earnings. Apple on the other hand smashed it.

kkelly said:
What is to stop wsb literally doing this over and over with other stock; they have such a large following now they could pick anything and pump the price?

GME is a unique situation due to the amount of short shares, and the relatively low capitalisation, plus the fact that most shares were locked up to being with.

Tweek_1984 said:
Vote with your feet and change brokerages

Diddums said:
What's everyone using instead of 212 now that they're a pile of dog poopoo?

Yep T212 has been pulling this type of **** all year 2020. I once even saw a $30 on Mcdonalds, probably the most stable share you coudl get.

I'm with IG and HL, but temped to give Freetrade.io a go. Been looking for feedback on it.

Gaygle · 28 Jan 2021 at 14:35

There's going to be a lot of people with a lot of problems after this. They're laughing at the shorts losing lots of money, but they don't realise they're in for the same. They simply aren't going to be able to sell anything and they'll just have to watch it freefall whilst screaming at their phones.

englishpremier · 28 Jan 2021 at 14:37

arknor said:
could someone should start a lawsuit against t212 for putting the customers interests last.
it's almost certain t212 loaned the shares to hedgefunds etc and are worried they won't get them back

can't be a coincidence that all the retail investor platforms do the same thing on the same day.

they are basically trying guarantee everyone who holds shares makes a loss? so they don't

Do T212 actually have any shares themselves or are they all borrowed from IB? T212 just running a customer ledger.

Martynt74 · 28 Jan 2021 at 14:37

Gaygle said:
There's going to be a lot of people with a lot of problems after this. They're laughing at the shorts losing lots of money, but they don't realise they're in for the same. They simply aren't going to be able to sell anything and they'll just have to watch it freefall whilst screaming at their phones.

Agreed, looks like someone is buying BB as it's making a recovery. Not sure if it's just people selling GME and diving into stocks they can actually buy?

englishpremier said:
Do T212 actually have any shares themselves or are they all borrowed from IB? T212 just running a customer ledger.

Yeah i mentioned that above. If all these platforms use one centralised ledger and they stop trading a specific stock there's not much 212/RH etc can do about it.