What the hell is a 130% short?

[Anonymous No.26646787]

[Anonymous No.26646826]

>>26646787
Shorts account for 130% of the available stock

[Anonymous No.26646899]

>>26646826
Why is that even allowed?

[Anonymous No.26646973]

>>26646899

[Anonymous No.26646986]

>>26646787
Like a Big Short... but bigger. When they make a movie about this, they shut all it The Bigger Short

[Anonymous No.26647003]

Its like something its 2 times shorter.

[Anonymous No.26647009]

I don't even into stonks but when I read "130% short" this music starts playing in my head
https://m.youtube.com/watch?v=jMiCUTsjQCE

[Anonymous No.26647029]

>>26646973
kek

[Anonymous No.26647034]

>>26646899
https://youtu.be/sVXnoanopzA

[Anonymous No.26647046]

>>26646787
Like a Big Short... but bigger. When they make a movie about this, they should call it The Bigger Short

[Anonymous No.26647113]

>>26646899
why are you asking anti-semitic questions?

[Anonymous No.26647237]

>>26646787
jews bought up every single gme stock in existence and sold it, hoping to buy back lower
having done that, they bought 30% more and sold it again

[Anonymous No.26647254]

>>26646899
I'm gonna level with you, I have no fucking clue but I have made so much money I shit blood today from straining to poop so I could go back to watching my candles.

[Anonymous No.26647591]

>>26646899
"Naked short"; basically selling stock nobody has.

It shouldn't be legal at all, but much of the financial world is like this.

[Anonymous No.26647663]

>>26647591
So are they forced to buy back the stock at whatever price it ends at then?

[Anonymous No.26647672]

>>26646973
Thank you anon, I just woke up the whole neighborhood

[Anonymous No.26647677]

>>26647663
Yes.

[Anonymous No.26647782]

>>26647663
you're starting to get it. but it gets worse - if they become insolvent then......

[Anonymous No.26648144]

>>26647782
>if they become insolvent then......
then everyone sells like mad and the stock goes to $0 real quick, along with being delisted. Am I missing something here? Spoonfeed me daddy

[Anonymous No.26648205]

>>26646899
What kind of Anti-Semitic questions are you going to ask next?

>Why money that doesn't even exist is allowed to be lent out at interest?

[Anonymous No.26648291]

>>26646787
Honestly OP, at this point it’s just cringe when people pretend to not know who Joe Rogan is. He is one of th emits famous people on the planet and he hangs out with most of the rest live on video daily.

You don’t have to play coy anymore, it’s okay.

[Anonymous No.26648317]

>>26648144
you don't get it

[Anonymous No.26648336]

>>26646973

[Anonymous No.26648382]

>>26648144
If they become insolvent, their debt gets passed up the food chain. Somebody WILL pay.

[Anonymous No.26648402]

>>26648144
Absolutely zero chance it goes to zero, I would throw so much money at 25 cent AMC. Many people would gladly pay more before I get the chance.

[Anonymous No.26648408]

How is it even possible to short over 100% of the available stocks. From what I can tell, short selling is basically:
>borrow the shares from someone saying "I'll give them back later, just trust me bro"
>sell them to someone else for an immediate profit
>wait a bit, hoping that the price drops eventually
>buy the same stocks at the new market price and give them back to the original person you borrowed them from
>if the stocks are cheaper now than when you first borrowed them then you make a profit, if they're more expensive then you make a loss

But how can you "borrow" more than 100%? Who are they borrowing from? And how can you possibly buy more than 100% of the stocks when the time comes and you need to pay out? Were they literally just hoping Gamestop would go bankrupt so that stocks become worth zero?

[Anonymous No.26648446]

>>26648408
>STOP ASKING QUESTIONS!

[Anonymous No.26648460]

>>26648408
Cool it with the antisemitism.

[Anonymous No.26648457]

>>26648382
>somebody WILL pay
And who exactly do you think they will be paying?
WSB is going to be full national socialist after their first face to face encounter with kikery.

[Anonymous No.26648481]

>>26648144
There are companies who have their employees retirement plan managed through that hedge fund. What do you think will happen if the hedge fund is incapable of closing their short position? Take a guess.

[Anonymous No.26648510]

>>26646973

[Anonymous No.26648548]

>>26647113
kek

[Anonymous No.26648559]

>>26648408

[Anonymous No.26648567]

>>26648408
Delta. There are subset of investors/brokers/banks that provide liquidity on trades for a cut of transaction. Yes or to have another company buy it as a merger, or they don't like games.

[Anonymous No.26648579]

>>26648481
I don't fucking care.

[Anonymous No.26648589]

>>26646973
That's why they will never sue a single holder here. Can you imagine posting all this shit and redpilling 100000's normies.

[Anonymous No.26648667]

>>26648481
>What do you think will happen if the hedge fund is incapable of closing their short position?

[Anonymous No.26648760]

>>26648567
But let's say the hedge fund buys all available stocks on the market. That's only 100%. Who are they supposed to buy the remaining 30% from?

[Anonymous No.26648927]

>>26648760
They're trading against future availability of the stock, not current. Clearly more stock can be traded over time than is actually available, what you're saying would only make sense if you could only trade each stock once.

[Anonymous No.26648935]

>>26648760
Short interest volume, Its like when an airline overbooks seats.

[Anonymous No.26648996]

>>26646787
Anything under six feet tall.

[Anonymous No.26649041]

>>26646899
Why is any evil kike financial machination allowed? Any form of short selling shouldn't be allowed period.

[Anonymous No.26649120]

>>26649041
If you can trade temporally against all possible futures over every given stock, possibility for gains approaches infinite.

[Anonymous No.26649259]

>>26646973
top kek

[Anonymous No.26649286]

>>26649041
>Any form of short selling shouldn't be allowed period.
that means you also cant trade on margin, shorting is just stocks being lent out like the money in leveraged longs, you need both to balance it out or your just going to bubble every market

[Anonymous No.26649343]

>>26647034

[Anonymous No.26649554]

>>26646826
how the fuck can you lend 130% of something to somebody
who even lends short stocks
why the fuck does this shit exist
why the fuck are people making real money for selling shit that literally doesn't exist

fucks sake

[Anonymous No.26649640]

>>26649041
kys normalfag

[Anonymous No.26649653]

>>26646787
every games knows that when you slow the enemy for 80%, and then slow him again for 50%, his total movement speed is reduced by 130%, because the spells stack additively

[Anonymous No.26649705]

>>26646787
every gamer knows that when you slow the enemy for 80%, and then slow him again for 50%, his total movement speed is reduced by 130%, because the spells stack additively

[Anonymous No.26649765]

Am I understanding this right? That the only way to stop your broker from lending your shares to these rodents to short is to set a limit sell order?

[Anonymous No.26649914]

>>26649554
It's like you have to be asleep and subverted to let this happen.

[Anonymous No.26649929]

>>26649554
This is exactly why people are pumping the fuck out of GME and it's working

[Anonymous No.26650162]

>>26648408
they've been doing this with gold for years. estimates are that there's more than 8000x paper claims to gold than what actually exists.

[Anonymous No.26650186]

>>26649554
>who even lends short stocks
You for one, if you own any stocks in a brokerage. Lending out shares to short sellers for interest is part of how they make money, and making sure they can get it back to you is why they margin call short sellers during squeezes like this.

Whoever the short sellers sells it to can lend the stock to short sellers too, and that's how you get 130%. Same shit as fractional reserve banking and the monetary supply.

>>26649765
I doubt this works due to how shares are actually owned through the brokerage.

[Anonymous No.26650196]

>>26646973

[Anonymous No.26650250]

>>26649705
>enemy agros on you
>turns 360 degrees and walk away at 30% speed

[Anonymous No.26650322]

>>26646826
I dont understand why this shouldn't be allowed? Like, if they really want to YOLO degen, pay a shitton of interest and risk their entire companies, then why not. Free country.

[Anonymous No.26650352]

>>26650322
It is allowed, it's just ripe for exploitation.

[Anonymous No.26650389]

>>26648408
whats the point of all that backend work, user puts up capital to risk and basically borrows money to short and his debts decrease if hes righr

[Anonymous No.26650438]

>>26650352
The whole stock market and crypto market is a big manipulation. Every buy and sell, every long and short is a manipulation. If a whale does it in a big way, suddenly its not ok?

[Anonymous No.26650485]

>>26650438
The fuck are you arguing about, who's talking about "OK"?

[Anonymous No.26650565]

>>26650485
People are angry at the institutional investors for shorting Gamestop for over 100% of the stock. I dont see why people think this is not ok.

[Anonymous No.26650649]

>>26648408
Because the derivatives market does not always need to have an underlying asset
This is how they can sell Gold ETFs with no gold in the vault.

They sell the “short” contract then they also sell the actual stock so it can be shorted again by someone else.

In the end all the shit needs to roll back uphill and money lands in the right hands.
This so also why if one link in the chain goes bust hard enough it can fuck the entire system because everyone is scratching each others backs.

How is this legal? Don’t ask anti-semitic questions

[Anonymous No.26650677]

>>26647003
Fuck you u made me laugh >:[

[Anonymous No.26650683]

>>26650162
yep the metal markets are hyper inflated with paper that could never be paid out in physical. If it were properly reset the price of metals like gold and silver would be far greater than they have been seen in a century.

[Anonymous No.26650748]

>>26650565
>they finally got caught
because shorts allow them to constantly manipulate the market and gives hedge funds the power to cripple the common man.
The majority of the stock market is artificial growth and decline that's constantly being manipulated to launder, racket, and transfer money around.
There is a logic argument for allowing a short or loaning/gambling on something that does not and cannot exist. The only reason it's allowed is, so they can manipulate/control markets.

[Anonymous No.26650836]

>>26646973
kek

[Anonymous No.26650838]

>>26646973
this

[Anonymous No.26650891]

yall niggas don't even smoke crack

[Anonymous No.26650899]

>>26647009
kek

[Anonymous No.26651094]

>>26648408
let say A owns 100% of stock
i buy all stock from A and sell to B
it is now shorted 100%
you buy 30% from B and sell to C
the stock is now shorted 130%
basically someone shorted with stocks that are already shorted

[Anonymous No.26651188]

Did the needful, l'm committed @233€ (Frankfurt is open ATM).

[Anonymous No.26651190]

>>26648760
Borrow stock, sell to A
A sells to B
Borrow stock from B
Sell stock to C
congrats, you just sold the same share twice

[Anonymous No.26651351]

>>26650250
i think you mean -30% speed because you'll be going the opposite direction

[Anonymous No.26651358]

>>26650186
My understanding at the top level, at the DTCC/NSCC is that lended shares are pre-emptively in the FTR (failure to recieve) state, and the FTRs can be sold just like a normal stock but cannot be lended. I think when FTDs (failure to deliver) are canceled by the delivery of the security, they are matched up with the highest priority FTRs, which are then canceled as well. Once actual FTDs hit (not placeholders but T + 3), if this occurs in over .5% of transactions in a given duration, then the security becomes a “threshold security”, which puts different/stricter rules on shorts because shit is fucking up. Yep, GME is on the list. So how the fuck does anyone get to 140% without naked short selling (aka abusive shorting, which is a crime except in various market maker situations)?

[Anonymous No.26651374]

>>26650748
This makes no sense
Shorting allows for price discovery
You can participate in shorting if you want to
People should be allowed to bet against shitty companies, lmaoooo it’s like everyone forgets about the guys who short the 08 crash and fucked over Wall Street, who got saved by the gubmint
If you think the stock market is all manipulation than I think your insane, believing that makes no sense since the elite having the power to do that would also imply they have power to essentially destroy countries in a snap and yet >they can’t seem to destroy Saudi aramco

[Anonymous No.26651380]

>>26651094
Jesus, how is that even legal? Fucking Darwinian usury.

[Anonymous No.26651570]

>>26648408
This is why crypto is the future

we are so fucking early bros

[Anonymous No.26651655]

>>26651570
>crypto is the future
memecrypto already done it
buy rbc !

[Anonymous No.26651741]

>>26646973
kek

[Anonymous No.26651747]

>>26651380
>>26651094
>>26651570
I mean, you can easily do this in crypto too.
Go on AAVE, borrow lots of asset
sell asset
person who you sold it to puts it on AAVE
borrow again

technically possible though difficult in practice

[Anonymous No.26651814]

>>26651380
there is not ONE company or ONE person that is 130% short, there are multiple entities

Companies can also issue new stocks, so the equation sums up. This whoel thing probably happened many times but the mass didnt notice. Only if there is enough money in the game things get fucked. It can cause a chain reaction where some (the wage slave) has to clean it all up in the end.

[Anonymous No.26651873]

[Anonymous No.26651889]

>>26651380
Not only legal, it’s how the entire system works. It’s called rehypothecation - reusing assets loaned or pledged as collateral. It’s explicitly allowed in repo, sec lending and derivatives collateral agreements.

The alternative would be billions or trillions of assets sitting unused in collateral or custody accounts.

[Anonymous No.26651903]

>>26651873
kek

[Anonymous No.26651960]

>>26648408
Jumping off this, why would anyone "borrow" stocks other than to attempt to fuck over the person they borrowed it from by shorting?
Why would you ever "lend" someone a stock?
What the fuck does it even mean to "lend" someone a stock?

[Anonymous No.26652019]

>>26651873
who is c???

[Anonymous No.26652021]

>>26651889
this, like I said here >>26651747
crypto can do this too, and personally I have nothing against it

The only shit I hate is that the jew can print money, and that Melvin fuckers got bailed out by daddy Citadel the same way banks got bailed out by daddy central bank in '08

That shit has to stop and that's what crypto can do. No more selective printing.
That's why I'm cheering for this GME thing

[Anonymous No.26652035]

>>26651358
Well you clearly know more than me. I've heard Melvin was shorting naked though.

[Anonymous No.26652041]

>>26651873
CAN SOMEONE EXPLAIN THIS

[Anonymous No.26652071]

>>26646973
KEK

[Anonymous No.26652079]

>>26651960
jesus are these regular biz posters? I hope they're tourists

[Anonymous No.26652091]

>>26650322
To trade stock you need a buyer and a seller. Shorts are just one side of the trade.

[Anonymous No.26652170]

>>26646899
In principle it isn't, naked shorts are illegal. It's technically done by the equivalent of fractional reserve shorting where a bunch of different parties lend and short stocks which have already been shorted.

[Anonymous No.26652214]

>>26648481
No there aren't. Melvin Capital has 7 clients. They're rich megajews, not retirement funds.

[Anonymous No.26652267]

Does shorting provides liquidity? Isn't that part of the role of bobos in the market?

[Anonymous No.26652353]

>>26648408
You borrow from the same people you sold to lmao

[Anonymous No.26652422]

>>26648457
>Reddiotors decide to debunk the mysterious forces that caused them to lose gains that would otherwise make them millionaires, discovers everyone involved is of jewish decent
This is how it starts
I'm visualizing it

[Anonymous No.26652483]

>>26651873
kek

[Anonymous No.26652489]

>>26652079
nevermind I'll just fuck off.
thanks have fun

[Anonymous No.26652538]

>>26646787
it's where you watch some hedge fund burn in flames.
dhedge fixes that

[Anonymous No.26652583]

>>26648408
Just work the settlement times.
A borrows stock from B for 31 days
Sells to C
Borrows from C for 29 days
Sells to D

At 29 days, buy from the market and D to repay C
At 31 days buy from the market and C to pay A

You’ve doubled your short (and your profit), by reusing the assets multiple times.

[Anonymous No.26652605]

>>26648457
No they won’t. WSB will get purged from reddit.

[Anonymous No.26652612]

>>26648760
It's like banking. If no one ever actually asks for the underlying, it doesn't matter how many people the bank sells the same underlying to, since they'll never actually ask for it. Person A legitimately buys GME. Their broker lends that stock to Melvin to short. Melvin sells that stock to Person B, hoping to buy it back later to return to Person A. Person B's broker then offers those shares up to lend. Melvin borrows them and sells them again. They now owe the same underlying to two people.

[Anonymous No.26652638]

what step am I missing here?
Everytime I try to complete my pc gets a bluescreen

[Anonymous No.26652686]

>>26648408
>>26646899

[Anonymous No.26652759]

>>26651873
please explain

[Anonymous No.26652789]

>>26652605
You are the most retarded gorilla nigger I have ever seen

[Anonymous No.26652814]

>>26648667
It is the dollarcaust

[Anonymous No.26652816]

>>26647009
LMAOOOOOOOOO

[Anonymous No.26652858]

>>26652041
Free money

[Anonymous No.26652934]

>>26652814

[Anonymous No.26652994]

>>26649554
>short a stock
>buy it back
>short it again
Shorted >100% like true retards

[Anonymous No.26653008]

>>26646973

[Anonymous No.26653038]

>>26652994
no it's literally unshorteed in the second step

[Anonymous No.26653192]

>>26651960
I think you get a small fee for borrowing out? Imagine you are super rich and are risk adverse, you have a lots of stocks and just borrow them out and by that tiny fee you ask (for borrowing them out) you actually get more money without risking too much. That’s how I understand it. If someone can tell us more I would really appreciate it!

[Anonymous No.26653270]

>>26652814
The true Hall of Cost.

[Anonymous No.26653518]

>mfw this thread
amazing

[Anonymous No.26653534]

>>26653038
If step 2 changes to "borrow" it would work. You would borrow it from the same actor you sold it.

[Anonymous No.26653897]

>>26646787
>>26646826
>>26646899
>>26646973
/biz/ is the funniest board

[Anonymous No.26654092]

>>26648408
bogs on the id

[Anonymous No.26654202]

>>26652489
Insults are cheaper than answers round these parts. Don't take it personal and you'll do just fine.

[Anonymous No.26654473]

HOW DOES IT WORK