Hi there, Recently T212 introduced securities lending info for retail investors to see how much of their shares been lent out to HFs, what do you guys think about this, knowing that your shares have been lent out for shorting, any concern?
No concern at all. Twenty characters
Shares have been lent out for years, and for far more uses than âshortingâ.
My view here is that it helps fund this low cost trade platform, so all for it.
Also as most are probably not aware, your pension funds most likely also lend out shares.
Think funds run by Vanguard, Blackrock, Fidelity and so on.
Specifically shorters are just taking a contrarian view that certain stocks wonât do well. They donât always get it right.
Investing without commission comes with this. If you donât want your shares lent out, move to a different broker. But you pay extra.
Looks like ,most of the lent out shares have been used to short meme stocks like AMC, GME, shorting them causes their price to decline and effectively causes to loose money for share holders, dont you think we are shooting ourselves in the foot by being a part of it without our consent.
You give consent when you sign up.
In which case, it is cheaper for you to buy more shares should you choose to do so.
You are talking about a very narrow potential outcome of âshare lendingâ, in which case are people that took part in the AMC/GME events recently not also taking part in moving the market the other way, showing the result of how crowds of retail investors can also move the markets?
Share lending has been going on since the 1960âs FYI.
I look at it as anyone who particularly shorts a market/company taking a bet on underperformance. Much like you can bet on a football team to win or lose. Depending on popular opinion, the value in the price or odds for either can shift as a result.
Itâs also brings it back down to earth as the price doesnât really make sense
Donât you think that Dark pools creating a huge disadvantages for Retail traders
No not really. The vast majority of what youâve read is supposition and conjecture, carefully written to keep the cult scared, bemused and most of all engaged.
Itâs footballification / polarisation at its worst.
Youâre either Man City or Man Utd.
Labour or Tory.
Vax or Anti-Vax.
A hedgie shill or and ape.
Having your shares being shorted in Dark Pools does not bother you guys.
For me, and with investing for the long term, no. If you think it reduces prices, then on the flip side it creates opportunity.
I know this is dog eats dog business, if I am smarter today I make money, if you are smarter tomorrow then you make more money, I am OK with that, do your research, study the markets and with a bit of luck, start making money, but one day Griffin and Plotkin comes in and starts shorting heavily , naked shorting and the rest, then you are hopeless you can not pump money anymore and start getting Marjin calls and closing all your positions, d you think, this is fair ?
you sound like you have CFDs confused with general investing using real sharesâŚ
you are clearly sold that shorting in any sense is wrong/evil, so why take part in the market at all since shorting has been supported for longer than many retail investors have been alive?
people who own shares cannot be margin called or have their positions closed just because someone shorted a stock. shorting plays a vital role in preventing prices getting inflated to ridiculous highs just because people want the market to always go up. when a company is cheating their investors, shorts who have done their homework announce their research to the public in a bid to get the price back to its FAIR valuation. they make money from shorting that stock as payment for their work in the publics interest.
just because someone decides to short apple or tesla, that doesnât mean the price is going to crash
When Tesla was trading around 750 in May Got shorted by HF Michael then price gone down to 540, letâs say back to fair valuation!! No my friend I donât think so, it was a large scale of shorting by a HF to make millions, and retail lost millions, it was not a research for the public to bring it back to fair price, it was pure greed and evil to make money. Tesla now trading around 865 ,can you see the Irony here , one man manipulates the market and makes millions, nothing to the with research or fair price, it is pure greed and evil.
some genuinely friendly advice for you here, the stock market is clearly not your thing, best to put your money somewhere else.
I think that might be a little unfair to say investing isnât for them.
I would reframe it slightly and ask if there is any real evidence of teslas share price declining due to a short position when it had a multiple at that time of over 1000?
I would also say alternative evidence other than some dude on YouTube pulling an odd face whilst pointing to a chart as the initial photo.
Hedge Fund Michael is one of those serious crooks you have to watch out for. If Hedge Fund Michael is shorting your stock, you sell it all, close your account and donate the balance to the Red Cross. HF Michael can margin call you even when youâre not using leverage.
Heâs Voldemort HF Michael.
I wouldnât say trading is not my thing, as long as the field is level for everyone and crook HFs ,crook brokers and dark pools are regulated properly
And crook pools of retail investors following Reddit. Encouraging people to manipulate the stock price and people losing out timing that badly. It works both ways.