Re:Robinhood is said to draw on bank credit lines amid tumult
by Red_Leaves_Flyy on Thursday January 28, 2021 @09:30PM
(#25952941)
I'm amazed that it still takes this long to clear financial transactions. Seems like no matter what retail customers always get the short end.
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Re:Robinhood is said to draw on bank credit lines amid tumult
by u678u on Thursday January 28, 2021 @10:21PM
(#25953401)
Honestly with free stock trading retail is getting a pretty good deal. People can complain all day but it isn't a profitable business any more.
Re:Robinhood is said to draw on bank credit lines amid tumult
by rswail on Friday January 29, 2021 @03:26AM
(#25955252)
So what you're saying is by disintermediating share/derivative trading, one level of middlemen has been made obsolete?
Sort of like travel agents and airfares?
Why is this a problem? The fact that the share trading market is keeping these middlemen in place is part of the exploitation of the process.
Market makers perform a useful function in terms of maintaining an orderly market. Brokers don't. Especially ones that offer credit to their customers, thus hiding the risk to the counterparties of a trade.