A Retail Trader Who Quadrupled Her AMC Holdings to Half a Million Dollars is Trolling Citadel’s Ken

Discussion in 'Wall St. News' started by dealmaker, Nov 16, 2021.

  1. %%
    Good confirmation. [Those that sell order flow openly disclose it.] Your point also confirms, since brokers, market makers make money on volume/they had real good reasons to halt trading in certain stocks........Interesting name =GameStop.LOL:D:D
     
    #11     Nov 16, 2021
    taowave likes this.
  2. zdreg

    zdreg

    GME remind me when the Hunt Brothers tried to corner the market in silver. The exchanges changed the rules to force them to liquidate.

    Robin Hood did not act in the interest of its clients by restricting trading. They are undercapitalized and to save themselves they screwed their customers by changing the rules with trading restrictions.

    Citadel is a professional firm. They don't make directional bets to try to ramp up profits. That is for retail traders.
     
    #12     Nov 16, 2021
    murray t turtle likes this.
  3. zdreg

    zdreg

    Disclosing payment for order flow is a legal requirement. Who and what good reasons did they have to stop trading of retail traders?
     
    Last edited: Nov 16, 2021
    #13     Nov 16, 2021
    murray t turtle likes this.
  4. %%
    I see your points;
    but the exchanges have a right to raise margins+ stop corners.
    Actually the Hunt bros got plenty of warning on their attempted silver corner. I enjoyed the book Big Rich, included the Hunt bros. The Hunt Bros also went into court on thier soybean corner+ turned out they should have quit while they were ahead.:caution::caution:
    Like the other posters implied, brokers have an obligation not to go bankrupt.
    The Hunt Oil Co was talented, good read.
     
    #14     Nov 16, 2021
  5. There were no shares on Robinhood(Can’t short), Etrade, Schwab or Fidelity during the spike $70-$500(Before trading halt by Hood). IBKR had nothing for small accounts to short. Citadel had exposure by Melvin?
     
    #15     Nov 16, 2021
    murray t turtle likes this.
  6. zdreg

    zdreg

     
    Last edited: Nov 16, 2021
    #16     Nov 16, 2021
  7. VEGASDESERT

    VEGASDESERT

    amen. if you think pfof is a rip off no problemm get with a broker where you can route to whatever exchange you want and pay up. simple.
     
    #17     Nov 16, 2021
    TrailerParkTed likes this.
  8. Options are cash, equity destroyed by the GME event would not be the biggest risk. I think RH allowing “Instant BP” and margin on GME when all the others brokers coded it a cash security is closer than shorts. I wrote that all ten of my brokers had no shares. A friend with a Center Point and big IB account had no access from $500 and puts and calls were $250 x $150 for a $500puts and $500 calls.
     
    #18     Nov 16, 2021
  9. Not true. Citadel made a deal wild Melvin Captial which caused them to have exposure.
    This is a simple fact:
    https://www.nytimes.com/2021/08/21/business/citadel-melvin-gamestop.html

    I suspect that Citdel was already exposed in the event of a Melvin bankruptcy and decided that they may as well get a stake in the firm if they were going to be forced to put up money to cover the losses. (Rules require the broker to make good if the client fails. If Melvin was trading through Citadel and was on the edge of bankruptcy, it seems like a smart idea for Citadel to come in and prevent the bankruptcy in exchange for a significant chunk of the upside.)

    The part that gets really shady is all the interplay between Citadel, various retail brokerages and DTCC (DTCC has a Citadel exec on its board.)
    DTCC seems to be the fig leaf that these firms are using to justify screwing their clients to protect the whales. I have yet to see details of the requirements DTCC issued to these companies (the existence of the requirements has been bragged about in the media, but the details not provided), or even a comparison to how DTCC treated other market participants with positions in the same stock.

    I can understand individual firms acting independently and raising margin requirements, but I don't see how anyone can possibly justify preventing a retail trader from buying a stock with settled cash.
     
    #19     Nov 17, 2021
  10. newwurldmn

    newwurldmn

    I think the citadel investment into Melvin was an opportunity to get in with a fantastic stock investor who was weak and they could negotiate a good deal.
     
    #20     Nov 17, 2021