Jan 28, 2021
5:57:51am
5:57:51am
This is a risk management technique... it's not new... when volatility is as crazy as it is... RH is just protecting
themselves...
Not long ago Interactive Brokers had to pay out $70m because someone on their platform go crushed by the move in oil prices... prices dropped so violently that the account went negative before the transactions to close the positions could be made. The client doesn't have the $70m, so IB had to fund the money.
It's the same reason so many firms aren't allowing people to buy these names on margin right now...
Not long ago Interactive Brokers had to pay out $70m because someone on their platform go crushed by the move in oil prices... prices dropped so violently that the account went negative before the transactions to close the positions could be made. The client doesn't have the $70m, so IB had to fund the money.
It's the same reason so many firms aren't allowing people to buy these names on margin right now...
Originally posted on Jan 28, 2021 at 5:57:51am
Message modified by HarlemCoug on Jan 28, 2021 at 5:58:20am
- Previous username
- Big12
- Bio page
- HarlemCoug
- Joined
- Sep 8, 2014
- Last login
- Apr 29, 2024
- Total posts
- 32,223 (4,022 FO)
Messages
Time
1/27/21 11:37pm
1/27/21 11:26pm