Trading the stockmarket (NO Referrals)

Trusty said:
You do realise Hedge funds dont have x100 leverage though right?
Click to expand...

I don't think it matters because there's probably not enough retail players using x100 leverage, not to mention it's limited isn't it ? It certainly seems Europeans are at least limited in their risk

https://www.etoro.com/customer-service/help/57347145/what-is-leverage/

The following maximum leverage amounts are defined by the European Securities and Markets Authority (ESMA), and apply to retail clients of eToro (Europe) Ltd (CySEC regulated) and eToro (UK) Ltd (FCA regulated), as well as additional jurisdictions in which eToro operates:

  • x30 for major currency pairs (such as EUR/USD)
  • x20 for non-major currency pairs (such as EUR/NZD), Gold and major indices
  • x10 for commodities other than Gold and non-major equity indices
  • x5 for CFD stocks and ETFs
  • x2 for cryptocurrency


Any retail client who meets certain criteria may opt in and apply to become an Elective Professional client in order to be outside these limitations. Please check out our dedicated Professional Trader page or the relevant blog post.

It is important to be aware that clients with Elective Professional status are not entitled to all protections that retail clients have under CySEC or FCA regulations. Furthermore, clients of eToro Australia Capital Pty are subject to different maximum leverage amounts and regulatory protections.
Click to expand...

https://www.bloomberg.com/news/arti...n-credit-lines-from-banks-amid-trading-frenzy

Robinhood Markets, the trading app that’s popular with investors behind some of this month’s wildest stock swings, has drawn down some of its credit lines with banks, according to people with knowledge of the matter, Bloomberg News reports.

The firm has tapped at least several hundred million dollars, one of the people said. Lenders include JPMorgan Chase & Co. and Goldman Sachs Group Inc. A representative for Robinhood declined to comment.
Click to expand...

I wonder what this means
 
Martynt74 said:
Well the fact he’s not selling and cashing out that 33m speaks volumes.
Click to expand...

Given that $14m of it is in cash, not GME, I'm pretty much he could lose it all and not have a thing to worry about. This is whole different level of game than the rest of us with a few thousand (at best) to play with.
 
Minusorange said:
I don't think it matters because there's probably not enough retail players using x100 leverage, not to mention it's limited isn't it ? It certainly seems Europeans are at least limited in their risk



https://www.bloomberg.com/news/arti...n-credit-lines-from-banks-amid-trading-frenzy



I wonder what this means
Click to expand...

Yea, the European market won't be as bad, there won't be as much leverage. And yea, i don't know if it'll be millions, but you get my drift, i'm onboard with taking a few hedge funds out, but i can also see the other side if GME stock were to get to 10,000 or something. The ripple effects would be massive
 
Minusorange said:
I don't think it matters because there's probably not enough retail players using x100 leverage, not to mention it's limited isn't it ? It certainly seems Europeans are at least limited in their risk



https://www.bloomberg.com/news/arti...n-credit-lines-from-banks-amid-trading-frenzy



I wonder what this means
Click to expand...

It means they've got more credit from the banks to they can cover the margin that DTC is asking for buys. Remember Robinhood clears it's own trades it doesn't use an outside clearing house. With the margin on GME increased by DTC to 100% from 2%-3% it meant Robinhood simply didn't have the cash to take on buy orders, especially since the cash is held for 2 days.

In short, it allows them to open up buy orders again.
 
Trusty said:
but i can also see the other side if GME stock were to get to 10,000 or something. The ripple effects would be massive
Click to expand...

But that's cost of a free market, if it's okay for shorters to manipulate it to near zero so they can make money then it should be perfectly fine for average Joe's to buy a stock because they like the perceived value of ******* over said shorters and make it go to infinity

If Joe isn't allowed to play the same game by the same rules then something obviously needs to change, there's never any protection for Joe when markets crash and they all lose money, Big money who cause it just get bailed out with Joe's tax money and never pay it back, I think this is why so many are rallying to the $GME, they're fed up of the status quo this is their chance to stick it to "the man" but I think banning them all from buying is going to create something greater than just some hedgefunds losing at their own game now, the fire has been lit and eyes have been opened
 
Minusorange said:
But that's cost of a free market, if it's okay for shorters to manipulate it to near zero so they can make money then it should be perfectly fine for average Joe's to buy a stock because they like the perceived value of ******* over said shorters and make it go to infinity

If Joe isn't allowed to play the same game by the same rules then something obviously needs to change, there's never any protection for Joe when markets crash and they all lose money, Big money who cause it just get bailed out with Joe's tax money and never pay it back, I think this is why so many are rallying to the $GME, they're fed up of the status quo this is their chance to stick it to "the man" but I think banning them all from buying is going to create something greater than just some hedgefunds losing at their own game now, the fire has been lit and eyes have been opened
Click to expand...

If you want a level playing field, remove x100 leverage. Hedge funds don't have more than x2 leverage, plus they have to go through significant credit checks to take out that leverage. The free market angle doesn't work here because millions in r/wallstreetbets with x100 leverage have a massive advantage. An advantage they probably shouldn't have and its kinda exposed some of these trading apps. There will be new regulations around this, you can tell.

What i fear is, that Joe might be the one that crashes the US economy, and they'll get blamed for it too. The whole financial system is run by people creating debt/credit. Its a long chain. If GME is allowed to run to something crazy like 10,000. That would equal trillions of debt, that's a whole load of destruction in its wake.
 
Last edited:
DarkBahamut said:
Given that $14m of it is in cash, not GME, I'm pretty much he could lose it all and not have a thing to worry about. This is whole different level of game than the rest of us with a few thousand (at best) to play with.
Click to expand...
Not the point though is it. He started with 50k so yes 13m in cash is life changing but you're not going to just **** away the rest on purpose. He must believe the real squeeze is still yet to come.
 
Trusty said:
There will be new regulations around this, you can tell.
Click to expand...

There needs to be really

Trusty said:
That would equal trillions of debt, that's a whole load of destruction in its wake.
Click to expand...

Like the $4Trillion of debt that is already propping up the already overpriced (considering there's a pandemic) market ? At this point I doubt it would make a difference, when the crash comes eventually and it's going to come you can be sure of that it's a matter of when not if, it's going to hurt a lot more than covid is hurting us
 
Minusorange said:
Like the $4Trillion of debt that is already propping up the already overpriced (considering there's a pandemic) market ? At this point I doubt it would make a difference, when the crash comes eventually and it's going to come you can be sure of that it's a matter of when not if, it's going to hurt a lot more than covid is hurting us
Click to expand...

I'm fully aware, but at least those "overpriced" stocks like Amazon/Google/Netflix run a business where the market deems them good at allocating capital, land and labour. GME does not.
 
Caved 2min to closing time and bought 10 shares - GME. I can 1000% lose the money and not even think about it. I'm liking the after hours price so far though ...

For the first time since RDR2 release I'm going to set my alarm to get up for market open and decide what I want to do. If this last YOLO reach 100% shortly after open I might paper hand it. If it goes to $1000 a share, I might hang myself if I sell out too early.

Either way, this thing will come to an end and millions are going to lose their arses on it
 
regulus said:
Caved 2min to closing time and bought 10 shares - GME. I can 1000% lose the money and not even think about it. I'm liking the after hours price so far though ...

For the first time since RDR2 release I'm going to set my alarm to get up for market open and decide what I want to do. If this last YOLO reach 100% shortly after open I might paper hand it. If it goes to $1000 a share, I might hang myself if I sell out too early.

Either way, this thing will come to an end and millions are going to lose their arses on it
Click to expand...
You did the exact right thing mate.

Look at that price.

Tomorrow is the day where they have to buy.

I'm a little bit jealous I didn't to be honest!
 
This is fascinating to watch. No way am I getting involved, but it kind of reminds me of going to a Vegas casino and watching a huge variety of people, from idiots to informed people, all with a varying degree of blood lust and vendetta to make some hedge funds suffer.
 
regulus said:
Caved 2min to closing time and bought 10 shares - GME. I can 1000% lose the money and not even think about it. I'm liking the after hours price so far though ...

For the first time since RDR2 release I'm going to set my alarm to get up for market open and decide what I want to do. If this last YOLO reach 100% shortly after open I might paper hand it. If it goes to $1000 a share, I might hang myself if I sell out too early.

Either way, this thing will come to an end and millions are going to lose their arses on it
Click to expand...
Wow you sleep late. The market opens at 2:30pm U.K. time
 
You must log in or register to reply here.
Back
Top Bottom