TD Ameritrade Trading Restrictions on Stocks

TD Ameritrade ^ | January 28, 2021 | TD Ameritrade

[TheDon]

Securities with trading restrictions

We have placed some restrictions on the following securities. These restrictions will not prevent clients from making basic buy and sell transactions. This list is as of January 28, 2021, 4:00PM ET.

AMC, CVM, EXPR, FOSL, GME, NOK, BB, BBBY, FIZZ, GSX, IRBT, NCMI, TR, UONE, VIR, NAK, NAKD, DDS, KOSS

The following restrictions are in place:

Stocks - 100% holding requirement (not marginable) Long calls and puts are allowed Covered call and short put orders may only be placed with a broker. Please be aware that wait times to speak with a broker may be longer than normal due to current market conditions. Covered calls only allowed if your account currently has the shares Short puts only if you have the maintenance/cash to cover the entire exercise amount of the short puts All other complex options orders will not be accepted We may also implement additional restrictions on the opening of option trades that expire Friday, January 29th

Please keep in mind that this list is not inclusive of every security restriction and may change at any time.

[TheDon]

Awwww....

[Lurkina.n.Learnin]

Ok. So the restrictions are on margin calls. N9 restrictions on buying or selling in a regular account.

[Don W]

What I am seeing here is that ONLY the predatory BIG players are allowed to artificially influence the market, regular folk, no matter how numerous, are to simply allow their betters the control of all trends, because WESAYSO.

Is the worm possibly turning, finally? I doubt it, but it is a nice comforting thought

[notted]

Eat your peas

[kiryandil]

TOTALLY legit.

And the 2020 "election" was TOTALLY legit, too...

they're not even pretending any more...

[Yo-Yo]

Does it say that TD Ameritrade will sell your holdings without your permission?

[4Liberty]

[DeFault User]

Got my butt burned trading on margin 20 years ago.....not doin’ that again.....no, no, no.

[indthkr]

Gamestop / Hedge Fund - bump for later.....

[FreeReign]

Yup. They stopped the vote to rig it. Now they do the same in trading.

[Kenny Bania]

GME up 61% in overnight futures after trading restrictions (somewhat) eased. Clear proof of collusion.

Oh boy, this is going to be fun.

[ocrp1982]

Word is spreading that the Dementia Joe puppet masters are making calls and pressuring Wall Street to shutdown the Day Traders. At the request/demand of Wall Street and that those calls are frantically going out.
Rush discussed this at length today and correctly called it for what it is. The Elite are quite upset that the hoi poloi average Joe Day Traders are using the rules the Big Hedge Funds have used to enrich themselves against them.

[Scram1]

Don’t fool me with that.
Schwab is the critter than
acquired my TD account.

[4Liberty]

"To “short” a company is to bet on the price of the stock falling, in simple terms. The hedgefunds would borrow shares of the company from other investors, sell the shares on the markets at the current high price, then buy them back at the expected future low price, and return them to the investors, pocketing a profit.

2 questions:

1. Why would "other investors" in the description above, let the HF "borrow" the shares - why wouldn't they just sell at the initial high price and pocket the money? Guess I'm not understanding the short-selling process.

2. Why is this such a big story? Isn't GAMESTOP a shrinking, tiny outfit? Like Blockbuster videos was? This isn't a company like Toyota or Microsoft, we're talking about. I don't get it...

[Gene Eric]

Systemic Shorting

[Oshkalaboomboom]

The stocks themselves don’t matter. Both sides are manipulating the rules of the trading game to benefit themselves. The dispute is that the big guys are losing the manipulation game so they are pulling strings to gain back their advantage. It’s all about the Benjamins. As far as the stock is concerned it could just as easily be Blockbuster. It just happens to be Gamestop.

[glasseye]

“It’s afraid...”.

[LukeL]

The stock price was around $15.00 when these hedge fund people put out short options. The way it works is a broker gives the hedge fund stock for free, the hedge fund sells the stock right away for a profit. However before a certain date the borrower is compelled to buy the stock on the open market and return it to the broker. If it happens today it would mean that for every share borrowed the hedge fund would lose $285.00. The other issue is they borrowed 140% of the total available stock. The more they try and buy the less supply there is and the more the price goes up.

[LukeL]

To answer #1. The reason why they would borrow out shares is because they think the price will go up. In a scenario where they borrow 100 shares at $10.00 per share they lose $1,000.00 right away. However if when the stock is returned the price is $15.00 per share they now have a stock value of $1500.00.

[Dave W]

The HF tried to destroy this company, as well as, AMC and others by shorting all of their shares. The little guy thought this was unfair ganging up on companies, particularly, those hard hit by covid, such as AMC. The little guys fought back by purchasing shares in those companies, some stocks soaring hundreds of percent, if not more. The HF were outraged that the little guys were making money off of them and not the usual other way around. One HF almost went bankrupt, if not for an infusion of 2.5 billion in cash on Wednesday. This is epic. There will be books and movies for years about this.