Can you explain why the collateral required is higher (if no one has any insolvency issues)? If you watch the video I posted in the parent comment with the webull ceo, he states the exact scenario where brokers have no…
A more succinct explanation: Hedge fund has huge unrealized loss that may bankrupt them if they try to buy the shares that they shorted back. Their broker realizes too late, and if they margin call them now, the hedge…
It is not a conspiracy but the system is broken. Everyone seems to be missing the point of WHY collateral requirements have gone up. It is not because of volatility of the price movement, but volatility of whether the…
Can you explain why the collateral required is higher (if no one has any insolvency issues)? If you watch the video I posted in the parent comment with the webull ceo, he states the exact scenario where brokers have no…
A more succinct explanation: Hedge fund has huge unrealized loss that may bankrupt them if they try to buy the shares that they shorted back. Their broker realizes too late, and if they margin call them now, the hedge…
It is not a conspiracy but the system is broken. Everyone seems to be missing the point of WHY collateral requirements have gone up. It is not because of volatility of the price movement, but volatility of whether the…