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Anything is possible but I don't think it would work the same way. For one you don't borrow shares to short /es. Another is that there's not a fixed quantity of futures contracts available like there is with a stock, as far as I understand.
Possibly on a commodity future like silver (search Hunt brothers) but I think that would be considered cornering the market which is illegal I believe.
Can you help answer these questions from other members on NexusFi?
They are saving you from yourself. Realistically, GME could go back to 20 dollars tomorrow. There would be lots of margin calls and a lot of people out of a lot of money. Then individual investors would scream why didn’t you tell me the risk? Then they would sue. So RH along with a lot of other brokers are taking a proactive approach to save you and them from the headache and pain which is sure to come.
Back in 99 during the tech boom they did the same thing. Stocks would move insane amount during the day. They had a list of stocks you couldn’t short and a list of stocks which was cash only and a list of stocks which couldn’t trade. This is nothing new.
No not in the same way because there is no "fixed supply of ES futures." Open interest changes depending on the number of open positions. At best, OI is a measure of potential liquidity. Whereas with stocks, there is a fixed supply of shares and a fixed supply available to short(borrow). With futures, if you want to go short, you simply open a short position. No future's contract to borrow and then sell.
However, what can be done as is often done is stop hunting and front running either by market makers or larger players. There's other little tricks used to fool volume players, like flash order then cancel games, but the ES is so liquid that the effect intra-day is often short lived and slippage is minimal (unless you're a tick scalper).
The other beauty of the ES is that games played on it result in arbitrage plays with the ETFs that closely track it as well as the underlying stocks that have the most influence upon the cash index - all of which renders large scale short term manipulation moot and keeps things relatively orderly. It's the after market hours where things can get the most dicey, but there are lock limits to end that non-sense (and consequently slow your roll). Stops are your friend.
Nah. Management had nothing to do with this fiasco. If anything, it helps them. Free publicity for their brand. Besides, the street loves a good "story".
It would be difficult. There's a fair bit of legal and administrative work involved, which, once completed, may have already missed the window. Besides, the large institutional investors needed for this type of a capital raise likely wouldn't be interested anywhere near these levels. Just picture a pension fund manager trying to explain this one to his investment committee. Ain't gonna happen
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
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Posts: 5,048 since Dec 2013
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Seems like most of the brokers are doing the same. I know Tradestation restricted GME yesterday. I believe @Big Mike said TDA and one other he knows about have restricted it as well.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,048 since Dec 2013
Thanks Given: 4,384
Thanks Received: 10,206
Apologies if this is behind the paywall. Interesting story of the person who founded WallStreetBets back in 2012 and was eventually kicked by his own moderators last year when he tried to clean the forum up.
WSJ :- WallStreetBets Founder Reckons With Legacy
Jaime Rogozinski likens recent surge in GameStop shares to a ‘train wreck happening in real time’
