GameStop Is Rage Against the Financial Machine

Re:GameStop Is Rage Against the Financial Machine by Scoundreller on Wednesday January 27, 2021 @12:26PM (#25930988)

> But there's 55M shares trading at all time highs.

One thing that’s different is commission-free trades. Plenty of folks buying and selling 10 shares at a time a dozen times/day “to profit off volatility”.

Doesn’t explain everything, but retail can put through more volume than ever before.

Just checked GME spread though, and it’s about $1.50 or about 0.5%, so the market makers must be happy with that and the volume.

[ Parent | on HN ]

Re:GameStop Is Rage Against the Financial Machine by klodolph on Wednesday January 27, 2021 @04:54PM (#25934538)

Are market makers happy? Don’t they have to do a bunch of delta hedging, and isn’t that harder to do with the stock being so volatile? I expect that risk is reflected in the spread, but then again, I don’t really understand markets.

[ Parent | on HN ]