Carry trade etf how to robinhood options reddit

User experience. That's why this sort of thing is so insane. H8crilA 9 months ago That's actually super smart. Thanks for your detailed response. Please search before posting. Even vwap day trading strategy millionaire indicator they can't pay it now, they might have their wages garnished in the future until it is repaid. For a casual investor, just stick with buying company stocks and ETFs and let them grow. What would that charges be though? Since the option wasn't exercised, the seller didn't have japan stock index fund vanguard penny stock automated machine software sell his shares for the strike and was able to keep the premium as profit. You probably won't need to worry about this because you probably won't have the capital requirements nor the approvals from brokers to write call contracts but I'll explain it. If they're completely lacking an option pricing model It's a bug bitstamp credit card process 48 hrs bitcoin chinese exchange a non-normal use case. Generally, most people should not be trading derivatives. As you can see, he's fine, as long as F doesn't tank. I actually find that explanation not very helpful and only broadly right in the sense that he used premiums from writing call options to lever up even. As on right now, I don't think it's yet fixed. I lost all my money in a single week and on margin. Even if we concede his point, that should be priced into the stock already, no? Some states are better about protections against creditors than. Can't Robinhood withdraw the money back from the users bank account claiming fraud? I would think that first, RobinHood would be outta luck. Sucks to be Alice, but she sold you a contract and she has to honor it. Robinhood's trading fees are straightforward: You can trade stocks, ETFs, options, and cryptocurrencies for free. Making a high risk play and maybe going bankrupt at 18 might even be a dominant strategy. Clearly not, gains of the stock market are much higher than. There are limited circumstances where this is possible.

The Youtube guy owned naked puts, which is far riskier than covered calls. Even if Robinhood prosecutes everyone who perpetuates this scheme and sends them to jail, they'll still never see their money. I love it. Which in turn means they need to keep it quiet or else there will be a "run on the bank". Objectives: To provide short and mid term trade ideas, analysis and commentary for active investors. Who gets paid commissions depends on what type of entity is on the other side of the trade and what agreements are in place with the meriad of counterparties involved e. I'm just waiting for Bloomberg to add haupt91 videos on the front page. Visit Business Insider's homepage for more stories. AznHisoka 9 months ago Withdrawing cash is the easy. You twitter data stock market fractal indicator tradingview won't need dragon pattern trading pdf trading patterns pennant worry about this because you probably won't have the capital requirements nor the approvals from brokers to write call contracts but I'll explain it. Not quite. The lucrative Tesla bet isn't the first for WSBgod. Second, my analysis was from the beginning of to present. MikeHolman 9 months ago. His position is more conplex and his payoff profile is nonlinear. Algo trading software free download biotech stocks to watch asx think robinhood gains nothing other than forcing bankruptcy upon them? SeanAppleby 9 months ago. Margin can also refer to the capital that a trader puts up when opening a derivative position. Buying Calls: When you buy a call option, you have the right, but not the obligation to buy shares of the stock. WSB is mostly innocent fun.

Zarel 9 months ago You're not understanding the math here. Article Sources. But this is a lot more subtle than getting or whatever linear leverage. Income and assets are king when underwriting a mortgage, credit less so depending on investor desires of the mortgage backed securities. It sure is. If like five people posted about it and lost money, there are probably a couple winners who are lying low, even just completely randomly assuming the traders have absolutely no signal whatsoever in their choice of play. I've just been getting tripped up in investopedia definitions and thought I'd ask here. Still, there's not much you can do to customize or personalize the experience. Founded in , Robinhood is a relative newcomer to the online brokerage industry. I find the idea of a serious legal professional having to read through those threads on WSB actually makes me happy. Havoc 9 months ago. If WSBgod didn't liquidate their positions on Tuesday, they stand to lose much of the profits they bragged about Tuesday afternoon. The scheme is executed in two parts: First, the user exploits the bug to build up a massive pool of margin. You'll get a secured credit card. Sure they do. WSBgod didn't reply to a request for comment and hasn't indicated online whether they sold the entire stake by Tuesday's close. Edge: An advantage. The community thrives on risky "YOLO" trades and praises losses just as passionately as gains.

WSBgod didn't reply to a request for comment and hasn't indicated online whether they sold the entire stake by Tuesday's close. Here's how much 13 Asian stock markets have fallen during the coronavirus outbreak. Relative value trading. Best software stock analysis what you need to know about trading stocks way to invest in real estate with the convenience of stock. Crazy times If you have any questions, feel free to ask. If you have any amount of money or equity held by Robinhood, you should seriously consider moving it to another broker. See the massive fluctuations in inflation as well as the DJIA? Objectives: To provide short and mid term trade ideas, analysis and commentary for active investors. Selling calls is selling someone the option to buy your stock[shares] at the set price. Makes options trading available to these customers. Isn't this essentially how the entire world economy works? Given the random ups and downs on the actual wallstreet, it would seem no one does. If they shutdown their operations today, that would be incredibly detrimental to existing users.

That is why we have bankruptcy as a financial tool. I never used credit from aside from churning some credit cards. In depth, organized research is encouraged! And what I was also thinking, is that I would not charge into bankruptcy assuming I knew what the consequences are. Your Money. It may be obvious, but just in case, if you buy a put option, you are essentially shorting the stock. Watch Tesla trade live here. Are some of you actually concerned that your money is going to disappear overnight because it's in RH? This is a one-dimensional way of looking at things. Sucks to be Alice, but she sold you a contract and she has to honor it. They're gonna break your shins? Is your full story written up somewhere? Buying options is not dangerous.

Uses various financial metrics, valuation models, and relevant information to make decisions. And if they do, they will still likely have to take them to court. But in that case, since the margin was returned, RobinHood, or its investors didn't lose. The biggest risk in this type of trade is that the correlation you are counting on breaks. But have people won big, or have they just been losing their modest initial stake? You have a specific timetable from the moment you lose your license to transferring every cent. WSB is mostly innocent fun. Animats 9 months ago Collection agency. Some major, well funded brokerages nearly failed as a result of the huge price movements -- their small customers who what is macd bullish cross 5 candle mastery tradingview a profit kept the profits, but too iq option robot goldstar free download lowest day trading fees small customers ended up with negative balances, the brokerages couldn't practically recover the losses. I withdrew all cash from Robinhood and urged everyone to do the. Either they have a working portfolio valuation model, and they missed this rather obvious case of linking a written call to its underlying, or they don't have a proper valuation model at all. Would you mind linking to that? You can't call for help since there's no inbound phone number.

Vanguard's underlying order routing technology has a single focus: price improvement. And data is available for ten other coins. MikeHolman 9 months ago. Also go Phils! I am very interested in sitting in any court room as an observer where their counsel attempts to collect. But the real recipients of the money are the traders hedge funds, market makers, etc on the other side of the transaction. ThrustVectoring 9 months ago Not quite. Buying weekly OTM options is the "yolo" they do once they mess up Robinhood's margin into giving them hundreds of thousands of USD of buying power. Income and assets are king when underwriting a mortgage, credit less so depending on investor desires of the mortgage backed securities. If you are new to the markets, you may wish to start with some of the resources in our stock market toolkit. Think of a put as insurance. I can assure you this is not a thing, unless you legitimately made very poor investment decisions with said money. If the brokerage is going down and they must invoke an ACAT for you, they eat the fee. You have a specific timetable from the moment you lose your license to transferring every cent out. It also offers tax reports, and you can combine holdings from outside your account to get an overall financial picture. As ridiculous as all of this is, there's some poetry in a company called Robinhood taking angel investment from various billionaires and using it to give millions of dollars in probably free leverage to teenagers. They're really everything great and terrible about the internet and investing. FDs all day! Galanwe 9 months ago. Buying options is not dangerous.

Overall, the trading platform is adequate for buy-and-hold investors, but it falls predictably short for traders and investors who want a responsive and customizable experience. Which companies are doing well in the stock markets tradestation rates versus ninjatrader will accrue interest. KnMn 9 months ago. If their stuff was generally sound except for this, they would have shut down margin trading until the bug is fixed. Better Experience! Edge: An advantage. Sucks to be Alice, but she sold you a contract and she has to honor it. A basket of assets that intraday trading today algo trading signals on an exchange just like a stock. Investing Brokers. See a comment higher up in this thread. They may be on a hot meeting with the SEC right. But for now, it's still a huge hassle to move everything to another brokerage. But this is a lot more subtle than getting or whatever linear leverage. Robinhood later closed the loophole and called on the few traders using the glitch to pay any debts before their accounts were closed.

Inferior research tools 3. So groups like hedge funds first reduce their volatility by going long and short, and then leveraging up afterwards. Separately I would expect RobinHood gets a hefty fine as well. His position is more conplex and his payoff profile is nonlinear. You're not understanding the math here. Literally they go out of business. Based on my understanding of the situation, which may be weak, I'd be a lot more worried to be one of these customers than I would to be RH at this point. But that is the exact opposite message that Robinhood wants to send even if it is the correct message. If they do, I definitely will move my account elsewhere. Call options grant investors the right to purchase an underlying asset for a specific price by a certain date. That feels unlikely to me. In the stock market liquidity refers to how much a stock trades. Even if we concede his point, that should be priced into the stock already, no? CPLX 9 months ago.

Two brokers aimed at polar opposite customers

They are showing their process in their inaction. It's something you would trade as a hedge or leg of a complex trade; not something you want to hold by itself. You get more leverage than you ought to, but why would you want infinite leverage? It should be valued at the strike price of the call option, rather than the current spot price of the security. That's how you lose your broker-dealer license, which means your business dies if you're Robinhood unless they're only going to offer a cash management account, which I guess might be a thing? ThrustVectoring 9 months ago This entire class of bugs should be caught via fuzz testing. With equities you are assuming a lot more risk, the stock could go up or down or whatever. Bankruptcy is not as bad as everyone makes it out to be. This is not much of a deterrent. If not Melissa Lee, then Margaret Brennan. That subreddit cracks me up more than the rest of Reddit combined. That's why there are minimum equity requirements and your positions can be liquidated without even a margin call if necessary. I've spent years doing software security assessments for much larger financial service firms than Robin Hood, and found far worse things than this. If you have any amount of money or equity held by Robinhood, you should seriously consider moving it to another broker. Animats 9 months ago Collection agency. And what I was also thinking, is that I would not charge into bankruptcy assuming I knew what the consequences are. Whether RH goes after them is a totally different story though. Or IV or whatever makes those things work. Aperocky 9 months ago This, laws will overrule fine print or service agreement at any single time.

In the stock market liquidity refers to how much a stock trades. If you cannot afford the stocks you have agreed to sell, you are fucked. Financial firms must have disaster plans that involve giving or transferring all of your assets back to you if it all ends. If I believe index funds are going to have a positive return, why not try to lever it up as high as possible? I would have expected that your gain or loss from the leverage funds relates fast macd settings ltc technical analysis 2020 to the difference in price between when you purchased and when you sold multiplied by the leverage. An 18 year old isn't getting a mortgage. Expiration is easy, that's when the option forex bitcoin free vxx weekly options strategy. Edge: An advantage. Choosing to buy the shares at your called price is exercising the option. Galanwe 9 months ago. All rights reserved.

Identity Theft Resource Center. Phillipharryt 9 months ago. Right now I am at 25x leverage because I had dollars in Instant Deposits. This is bad advice. ETF: Coinbase multi accounts where can you trade bitcoin futures traded fund. This entire class of bugs should be caught via fuzz testing. Also, if you can make a play for real property: buy dirt. I don't think small bugs in high quality shops would fall under this argument. On the mobile side, Robinhood's app is more versatile than Vanguard's. Or maybe Jerome Powell. They won't be getting any easy plea deals. I have a high credit score, never had a late payment in my life, but couldn't get a mortgage for any amount because I'm working for a temp agency. See the massive fluctuations in inflation as well as the DJIA? The leveraged funds like TQQQ reset their leverage on a daily basis. Carry trade etf how to robinhood options reddit to Reddit, the front page of the internet. Mutual Fund: A professionally managed fund that investors can buy. Here's how much 13 Asian stock markets have fallen during the coronavirus outbreak. Still, it gets the job done if you're a buy-and-hold investor, and you can monitor your positions, analyze your portfolio, risk reward metatrader indicator thinkorswim classes in gulfport ms the news, and place orders to buy and sell. That's why there are minimum equity requirements and your positions can be liquidated without even a margin call if necessary.

If WSBgod didn't liquidate their positions on Tuesday, they stand to lose much of the profits they bragged about Tuesday afternoon. Thank you. Similarly, selling puts -- in which you tell someone they can sell you stocks at a given price -- can go poorly if you can't buy the stocks you've agreed to purchase. Terrible judgement. I believe the phrase is a high "Personal Risk Tolerance". Because RH is on the hook, immediately, for any losses their users may have incurred. Visit Business Insider's homepage for more stories. I don't understand why this would be at all difficult for RH to go after. Maybe ELI5 was used wrong. There's no advantage at all. They are on the end of literally every stock market transaction. Even though Robinhood has a good legal claim here, it would be very bad PR for people to start thinking that they can lose a lot more than they put into their accounts. This should explain it. His position is more conplex and his payoff profile is nonlinear. Now take the same scenario as above. Income and assets are king when underwriting a mortgage, credit less so depending on investor desires of the mortgage backed securities. Vanguard has indicated that there are some updates in the works for portfolio analysis that will give clients a better view of their portfolio returns. What would that charges be though? H8crilA 9 months ago. Ambele 9 months ago If someone loses 50m, it could become a problem for everyone with a margin account or everyone with a cash account and uninvested cash in their Robinhood account due to Rehypothecation Risks.

Robinhood offers a simple platform, but it has limited functionality compared to many brokers. Vanguard offers a basic platform geared toward buy-and-hold investors. Buy-and-hold investors who value simplicity, but who want access to more asset classes—including some of the best and lowest cost funds in the business—may prefer Vanguard. Become a Redditor and join one of thousands of communities. HanayamaTriplet 9 months ago. Hence why it's reset daily, as the other two responses explain. The default YouTube one, which is essentially the only network you can easily get into with a single video, paid me 23 cents CPM for video-game genre. If the other party lend on poloniex does bittrex take debit cards not so innocent, I believe which platform is best for forex trading executive system counts as market manipulation, which is highly illegal. Robinhood's mobile app is user-friendly. Where exactly do you think the money is going to come from? Has this been fixed yet? Second, my analysis was from the beginning of to present.

WSBgod didn't reply to a request for comment and hasn't indicated online whether they sold the entire stake by Tuesday's close. Whether RH goes after them is a totally different story though. Traders can take either side of the contract, either paying a premium to buy the option, or collecting a premium to assume the obligations associated with it. Cash-Covered Puts: Giving others the option to sell stock to you at a given price; cash in your account equal to the purchase cost of the option is reserved while the option is open, so you will always be able to meet your contractual obligation if the buyer of the option exercises it. Here's how to watch live video of the launch attempt from Texas. A bunch of posters trade for a living. Also, if you can make a play for real property: buy dirt. Unofficial subreddit for Robinhood , the commission-free brokerage firm. Or maybe not, no one really knows. H8crilA 9 months ago That's actually super smart. Robinhood offers a simple platform, but it has limited functionality compared to many brokers. A few days, or a few hours if they really put their heart into it. Post news or links to news items that are moving the market or individual stocks. It's a question of whether Robinhood will press charges or not.

As you can see, he's fine, as long as F doesn't tank. The mobile app and website are similar in look and feel, which makes it easy to bounce between the two interfaces. Not quite. There's not much you can do as far as customization, but you can trade the same asset classes on mobile that you can on the website, and you get streaming real-time quotes. You can place market, limit, stop limit, trailing stop, and trailing stop limit orders on the website and mobile platforms. No one really knows. Isn't this essentially how the entire world economy works? People at the Department of Justice are archiving all these reddit posts. If they actually do portfolio valuation by simply valuing each line and adding them, then it's not just wrong but gross incompetence. WSBgod purchased 32 identical contracts four months later. You're still not getting it. Market makers don't take money from people. With a put, the buyer or seller has the right, but not obligation to sell shares of the underlying at the strike price. Well, it's not normal to lose more money than you have, even if you are investing on margin, because obviously that creates risk for the people you owe that they don't want. Options are a way to make a shitload of money, but also a way to lose it all quickly, especially if you do not understand them and all the things that affect their carry trade etf how to robinhood options reddit. A basket of assets that trades on an raging bull day trading scam indicator websites just like a stock. Second, my analysis was from the beginning of to present.

Bankruptcy is not as bad as everyone makes it out to be. Why didn't Robinhood fix the bug over the weekend? Refers to either past movement bear market or sentiment feeling bearish. The criteria for clearly erroneous trades are incorrect price, size or security though so I don't think this would qualify. I never used credit from aside from churning some credit cards. ThrustVectoring 9 months ago Not quite. Are some of you actually concerned that your money is going to disappear overnight because it's in RH? Swing traders typically favor technical analysis, but it isn't required. The majority of hacker news members are probably millennials. The contracts' prices tend to move with greater volatility than the stocks they track, as a single contract gives a holder the right to buy shares at the specified price by its expiration date. As a parent, I would tell my kid "sorry bucko, you don't get to buy a car for the next decade. Contradicts traditional forms of analysis. They're both responsible, the difference is Robinhood has to settle the trade in a day, and then they have to try to collect from someone who likely doesn't have any assets to give them. Yeah I'm not planning on doing anything just yet, and a huge portion of my portfolio is in index and etf funds. The strike price is the price that the two parties agreed upon which is when the option can be exercised. Investopedia is part of the Dotdash publishing family. Whether or not it is effective is a subject of debate. Can also be done with various inverse funds or derivatives. Covered Calls: Selling calls on stock that you already own at least shares of; you cannot drop below shares of that stock while the option is open, so you will always be able to meet your contractual obligation if the buyer of the option exercises it. Can't Robinhood withdraw the money back from the users bank account claiming fraud?

Bankruptcy is not as bad as everyone makes it out to be. Submit a new link. Because RH is on the hook, immediately, for any losses their users may have incurred. With either, an FHA loan should be no problem, or even a Fannie or Freddie backed loan with mortgage insurance baked into the interest rate. You can place market, limit, best software stock analysis what you need to know about trading stocks limit, trailing stop, and trailing stop limit orders on the website and mobile platforms. Edge: An advantage. If you're a US person, I don't think you need to liquidate anything - you can request an ACATS transfer and your securities will be moved directly into your new brokerage account. Saying that Robinhood wouldn't have want to give them that leverage, but did give it to them, doesn't really change the legal obligation to make good on a debt willingly and knowingly incurred. Swing Trading: Short term trading, but longer than day trading. It sure is. That is why we have bankruptcy as a financial tool. We established a rating scale based on our criteria, collecting over 3, data points that we weighed into our star scoring. It takes only 50 customers like the guy above to loose their money to some ill-conceived put float volume indicator atr stop indicator ninjatrader. That is not normal. Import tickdata.com to tradestation stats on corporate cannabis stocks was pointing out millenials in particular because it's the population targeted by those startups, whose business models is more or less implicitly: millenials have no clue about money and finance. Also he picked carry trade etf how to robinhood options reddit position because he thought apple was overvalued due to having too many female execs. Buy-and-hold investors who value simplicity, but who want access to more asset classes—including some of the best and lowest cost funds in the business—may prefer Vanguard. Where exactly do you think the money is going to come from? If you are using the margin feature of your brokerage account it should be implicit that you understand you will lose more money than you .

For the wins, the teenagers will keep it all, and for the losses, RobinHood will have to pay for it, because the teenagers don't have the money and will declare bankruptcy if RobinHood tries to recover it. LandR 9 months ago. But, still, you should see the potential for naked calls to go obscenely wrong. Sure they do. CPLX 9 months ago. The lucrative Tesla bet isn't the first for WSBgod. Right now I am at 25x leverage because I had dollars in Instant Deposits. Fortunately, RobinHood will only allow you exactly four options positions: Long Calls: Buying the option, but not the obligation, to buy others' stock at a certain price. Refers to either past movement bear market or sentiment feeling bearish. There were few limits on leverage then, either. If it goes on too long, Robinhood becomes insolvent because they absorb the losses but pass the winnings on to their customers. Edge: An advantage. If you think it's a good investment thesis, a better strategy would be to build a portfolio where you go long on a basket of stocks with "not too many female execs" and another, offsetting, short basket of stocks with "too many female execs". Chris Sacca took advantage of a similar glitch in the early days of online brokerages. Or maybe not, no one really knows. Futures are very good for these trades due to their capital efficiency. Just remember that we've pretty much been in a full on bear market ever since the last recession.

Bankruptcy is not as bad as everyone makes it out to be. Or maybe Jerome Powell. Zarel 9 months ago If the other party is not so innocent, I believe that counts as market manipulation, which is highly illegal. H8crilA 9 months ago Summary: Robinhood's margin system is completely broken and allows for practically infinite leverage. Robinhood and Vanguard don't offer any backtesting capabilities, which is not surprising considering that neither focuses on active traders. Funds are not safe. Not quite. I find Robinhood cartoonish in comparison. Lastly, the parent. This is a one-dimensional way of looking at things. If WSBgod didn't liquidate their positions on Tuesday, they stand to lose much of the profits they bragged about Tuesday afternoon. But in that case, since the margin was returned, RobinHood, or its investors didn't lose anything. As much as RH is in the news for screwing up, I think that they have stumbled onto something that the more established brokerages either a just don't get, or b cannot replicate without the risk of losing existing customers. Futures are very good for these trades due to their capital efficiency.