ponyo
Lifer
- Feb 14, 2002
- 19,688
- 2,811
- 126
Tomorrow, all of sudden there's no risk to buying GME and other WSB names? That's what Robinhood is saying? Total disrespect they're showing us is so insulting. After these crooks killed the momentum and stole millions of panic sold shares from retail at the bottom? While not allowing us to fight back by tying our hands? Now after today, these rich fucks have way better footing and balance because their short books are less short because they were able to cover for cheaper and also make money on the way down today. These thieves completely stole retail money today. Every retail investor need to be compensated. They need to send these crooks to jail and dissolve Citadel and other crooks like them.
Biden needs to say and do something. To show he's not one of them.
Biden needs to say and do something. To show he's not one of them.
ponyo
Lifer
- Feb 14, 2002
- 19,688
- 2,811
- 126
ultimatebob
Lifer
- Jul 1, 2001
- 25,134
- 2,450
- 126
Yeah, you have an army of millions of Redditors (myself included!) who are looking to financially destroy anyone dumb enough to do that right now. Maybe you can do it in a few weeks, but I wouldn't try it now.
Red Squirrel
No Lifer
Question on shorting, so from my understanding, shorting a share is basically making a bet that it will go down, so you put an amount of money on the table and bet that. When you win, you get the money, when you lose, you lose the money. Is that right? If yes then where does the money go/come from? Do you need another person on the other end that is betting the opposite, for it to go through?
Torn Mind
Lifer
- Nov 25, 2012
- 12,065
- 2,768
- 136
It's not implausible as Congressmen can hold stocks or have a close connection with interested agents, but substantial proof isn't going to come out so people can do something actionable.
Tweak155
Lifer
- Sep 23, 2003
- 11,449
- 264
- 126
I can't find it now, but Unsual_Whales' reply to that was quite good. I have no idea how to search Twitter to find it again though.
Tweak155
Lifer
- Sep 23, 2003
- 11,449
- 264
- 126
When you short, the first transaction is to locate shares to borrow (typically you pay for this, and the fees can be super small to quite impactful). Someone agrees to let you borrow, the shares are then sold immediately on the market (commonly referred to as selling to open), and you have a contractual obligation to replace those shares at some point in the future.
At the time you buy the shares for the replacement to give back to the lender of the shares, will determine your winnings or losses - based on the price of the replacement shares at time of purchase.
Zorba
Lifer
- Oct 22, 1999
- 15,613
- 11,255
- 136
When you short you sell someone else's share, generally the brokers, to someone else. So you get money off that sell. After some period of time you have to give the broker his share back, so you have to rebuy the share on the open market. If the share price has gone down, you make profit on the difference. If the share price has gone up you loss the difference. But shares actually change hands (or at least are supposed to).
Starbuck1975
Lifer
- Jan 6, 2005
- 14,698
- 1,909
- 126
Will be interesting to see how the Biden Administration handles this, are they on the side of Wall Street or the people who turned the game against the hedge fund elites who have bent the rules to increase their wealth, even as the majority of society slugs through a global pandemic.
dullard
Elite Member
- May 21, 2001
- 25,982
- 4,592
- 126
Tweak155 and Zorba answered well. But I think it helps to make it personal.
Imagine that I ask you to loan me your spare living room end-table. I will return your table exactly as-is in 1 month. For that, I will pay you $100. You also know what I will do with it in the mean-time. I will sell that table to a stranger. When the month expires, I will buy that table back and return it to you (I'll even clean it up so that nothing changes). You keep the $100 rental fee. Will you take that deal?
In that month, I sell your table to lets say, Ponyo, for $1000. Then in one month I buy it back from Ponyo, for lets say $700. Then I return the table it to you.
You profit $100 (the rental fee). I profit $200 ($300 on the two trades minus the $100 rental fee). Ponyo had your table for a month, hated it, and lost $300.
My gamble is that what if Ponyo likes your table? After the month is up, he requires me to pay $1300 for it. Now Ponyo profits $300. You profit $100, and I'm out $400 (losing $300 to Ponyo on the two trades plus the $100 rental fee). Even worse, what if Ponyo makes me pay $5000 for it. Now I'm out $4100, $4000 to Ponyo and $100 to you. My losses can be infinite if Ponyo wants it to be because after the 1 month time span I am forced to buy it back at whatever price he wants before I can return it to you.
Note: this is a bit of a simplification, I can always borrow another identical end-table to return to you and not quite have an infinite loss.
KeepMoving
Junior Member
- Aug 12, 2016
- 14
- 4
- 81
There is nothing "fucking stupid" about his question. The value as per the stock price doesn't align with what the company is worth. There is ZERO ability to question this.
Every logical statement should tell anyone to short it.
It's no different than during the great recession when a select few people were shorting.
pete6032
Diamond Member
- Dec 3, 2010
- 8,086
- 3,534
- 136
It will come down eventually. Collective internet anger tends to be a temporary thing. Efficient market hypothesis.
Last edited:
According to that redditor via that tweet (if it's true of course) that has already been answered.
Torn Mind
Lifer
- Nov 25, 2012
- 12,065
- 2,768
- 136
Every politician has a vested interest in Wall Street. Money and influence are what matters after the votes are counted or if the vote is merely a formality in a mono-party area.
Joe's home state is unassuming but is corporation central. No doubt Joe will say what people want to hear while not ruffling the corporate backers.
MrSquished
Lifer
- Jan 14, 2013
- 26,067
- 24,394
- 136
KMFJD
Lifer
- Aug 11, 2005
- 32,313
- 51,251
- 136
RH was just about to go public before all this happened? Pretty dodgy stuff they're doing if true
highland145
Lifer
- Oct 12, 2009
- 43,973
- 6,337
- 136
@Red Squirrel as above but the "shorter" then bashes the company publicly to insure the stock drops.
Remember, they didn't short gme 100%, they shorted 140%. wtfbbq?
Remember, they didn't short gme 100%, they shorted 140%. wtfbbq?
MrSquished
Lifer
- Jan 14, 2013
- 26,067
- 24,394
- 136
brianmanahan
Lifer
- Sep 2, 2006
- 24,612
- 6,003
- 136
i don't understand why so many people haven't gotten out yet
forget sending a message, just get out while you've still got a decent profit
unless they think it's got further to climb before it implodes
forget sending a message, just get out while you've still got a decent profit
unless they think it's got further to climb before it implodes
The point isn't profit. The point is to implode the hedge fund.
highland145
Lifer
- Oct 12, 2009
- 43,973
- 6,337
- 136
And the hedge funders/fixed market win. Next week, back to effing Joe.
Just like always. If Joe makes $, the insiders make $$$$$$.
Same applies to congress.
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