News for hackers. Stuff that matters.

A comment on WallStreetBets vs WallStreet: It's not about the money anymore. Parent comment

Re:WallStreetBets vs WallStreet: It's not about the money an... by kgwgk on Thursday January 28, 2021 @10:51AM (#25943750)
Their margin requirement may be linked to the name so increasing the margin requirement to 100% would be a way to block the use of margin.
[ Parent | on HN ]
Re:WallStreetBets vs WallStreet: It's not about the money an... by aynyc on Thursday January 28, 2021 @10:58AM (#25943868)
That would block all margin trades, no? Not a specific instrument. I understand why they did it, but it leaves a very bad taste in my mouth.
[ Parent | on HN ]
Re:WallStreetBets vs WallStreet: It's not about the money an... by kgwgk on Thursday January 28, 2021 @11:02AM (#25943927)
They can set margin requirement separately for each stock.

For example, with InteractiveBrokers "long stock positions [of AMC, BB, EXPR, GME, and KOSS] will require 100% margin and short stock positions will require 300% margin until further notice".

https://twitter.com/IBKR/status/1354792600004386818

[ Parent | on HN ]
Re:WallStreetBets vs WallStreet: It's not about the money an... by aynyc on Thursday January 28, 2021 @11:10AM (#25944068)
I get that part, but why would 100% margin on buys eliminate the buys? If I have $100K cash, I can still buy $50K of XXX and meet the margin requirement. They are blocking buys, but not sells.
[ Parent | on HN ]
Re:WallStreetBets vs WallStreet: It's not about the money an... by kgwgk on Thursday January 28, 2021 @11:15AM (#25944164)
Who is blocking buys?

The context of this subthread is this message https://news.ycombinator.com/item?id=25942677 about brokers allowing the buying of GME but not on margin (and how they don't have to disallow the use of margin for every stock for that).

[ Parent | on HN ]