GME Short Squeeze and Limit Sell limitations

My understanding is that it is likely to do with attempting to increase the likelihood of order completion. Lets say you attempt to sell £1,000,000 of shares - they need to be able to sell ALL of the shares for the order to complete, or it will fail. In other companies (like HL) you’re paying £10+ per trade as they back off complicated trades like this which failed the automatic way, to a manual process involving a person to attempt to the sale. Freetrade do not do this - if an order is unable to be executed in it’s entirety it will fail - all of it. You get this effect quite a lot with penny stocks with low volumes for example.

This is sort of what I don’t understand about this argument - I’m no expert - but say there is a massive short squeeze and the price rockets up - I’m pretty sure that your attempt to sell will fail (no matter how many you’re trying to sell - or perhaps especially if you’re trying to sell all your position) as the only orders that will be succeeding will be the manual orders from other brokers as there will be a massive disparity between buy/sell orders and quantities available. If getting a sale at a critical moment is something that is super important to you, you’ve got the wrong service - you need to pay a premium for this - £10 per trade.

See: Order Execution policy

7 Likes

Just out of curiosity which brokers that are accessible to UK residents allows trading with no limits? Asking for a friend… :wink:

Freetrade is the only UK based investment platform I’ve used, but I believe HL and ii charge a fixed fee for any sized trade. In fact, I think pretty much all the more established brokers operate this way.

1 Like

this! :raised_hands: I only asked a simple question, i pay 9.99 like everyone else why should i be silenced for asking an honest question relating to the platform i use. At least @woody answered it anyway so thank you for that :+1:

2 Likes

Agree 100%. I like this community because you can usually get good common sense intelligent answers from grown adults. If I wanted to get my content from a bunch of kids who can’t post a thing without the need for simian and gem stone emojis, I’d head over to reddit.

Whilst the GME and AMC shenanigans have brought a good number of customers to freetrade, the down side is that every day, we get post after post complaining that FT doesn’t cater to the wishful thinking of a certain type of investor.

3 Likes

I’ve been on the sign-up list for that other app for about a week before I’d even heard of FT.

Their loss and FT’s gain I guess, as FT have earned about £50 in FX charges and interest on about £10k since I signed up. I’m also unlikely to switch now, because I don’t want to maintain multiple ISAs and selling all my shares to transfer cash to another ISA seems pointless unless there’s a really good upside, which I’ve not seen evidence of yet.

Also, as I understand it, FT is actually cheaper than the other platform too as the bid-ask spread is lower. Although from the screenshots I’ve seen, that other platform has the better app. But I don’t know from personal experience.

But anyway, just from the fact you can actually sign up for it, I’d say FT wins.

2 Likes

With the exception of the usual twice-a-week 25k post (which people now know not to click on if they have already seen one and aren’t interested), as far as I can see all of the GME and AMC material is siloed in threads marked with GME and AMC.

I haven’t seen any talk of GME and AMC in the other threads, so I am wondering if you could elaborate on how this is effecting the community at large, given that these threads are effectively opt-in? Thanks!

1 Like

It only appears that way because the mods are pretty good at merging all the various threads on these stocks when they appear.

But even then, you only have to look at the tone of the conversations within the AMC and GME threads and compare them to the threads of other stocks. You certainly can’t have a sensible discussion of these stocks that’s for sure.

2 Likes

We appreciate the mods for their hard work :muscle: Managing a forum this big is difficult, and it’s good to keep things organised and easy to find.

I agree GME is a very interesting company. What aspect of the stock do you think is not being discussed that you would like to see explored further?

1 Like

The big issue is that these stocks are the only ones where one camp think it will go to the moon and others argue from thinking it will sink up to make a decent company and even a big profit are so divided. Those who are determined it will hit 25k are very aggressive if challenged an awful lot of the time and resort to childish sayings. Now I am not against an emoji but like anything in life too many to emphasise something is usually a warning sign :stuck_out_tongue_winking_eye:

Besides the ONLY real divide is people wanting the expectations to be realistic and sensible as many are believing things then putting money they can’t afford at risk. In the end the community don’t want to see people lose out that is all :+1:

At the end of the day it is only these stocks with the wild predictions and constant new accounts, that are sometimes just alts, that get these reactions.

3 Likes

Yeh like woody said, thry don’t allow partial fills yet so allowing one £1m sell would get you a terrible price, far lower than the market. Some brokers would fill gradually in small chunks but this requires either a large team doing it manually or a lot of technical work which is unlikely in the midst of an EU rollout.

3 Likes

Also revoluts limit is $10k :smirk:

1 Like

Ultimately everyone is here to make money. You are correct that the target price for GME (and AMC to a lesser extent) is probably wider than anything else currently trading. You can broadly divide people interested in this stock into three groups:

  • Mooners/Squeezers - People who believe the stock will increase parabolically in the short to medium term as the result of a synergistic combination of short and gamma squeezes. The target prices for individuals in this group range from $1000 at the lowest end to a potentially infinite valuation, which would be capped only through government or regulatory intervention.
  • Value Investors - People who believe the fundamentals of the company are extremely promising. The target range for these individuals is typically between $600 and $1000, over the next 2-3 years.
  • Bears - People who believe that there is no grounds for a squeeze to form, but also that the fundamentals of the company make for an inherently unsound investment, for whatever reason.

Amongst the Mooners and Bears you will also find people who believe it is their responsibility to warn others of missed gains or possible losses, respectively. I think it’s important to understand that the people who fall into this category are not doing it for the sake of disruption, but because they have a genuine belief that they are helping others see the “truth” of the situation which they would otherwise miss.

Further, in all cases this behaviour is typically driven by past experiences with money. Bears are likely to have been burned in the past and don’t want to see others suffer the mistakes, and Moons, having been similarly jaded by the current economic circumstances, are seeing this as an opportunity to escape an otherwise very bleak future. To many, GME represents a last-chance hope at escaping the poverty trap. Is it wise for people to put more money than they can afford to lose into a stock? I don’t believe so, but at the same time people have made gambles like that to improve their odds since the beginning of time, and will continue to do so. Whenever the perceived reward greatly outweighs the risk, people will do this.

At the same time, those who have felt the pain of a loss will feel compelled to warn others. Because both sides are fully committed to “helping” the others, neither are likely to back down from their views, and each attempt at “correcting” the other only inflames the situation.

If I were to make a guess about demographics, I would hypothesis that the Bears (in this situation) tend to be older than their Moon counterparts. Many of the new investors brought onto to the platform will have been via GME and AMC, which anecdotally have a younger retail shareholder base. I believe this also contributes to the sense of “differentness” which unfortunately broadens the gap of understanding and empathy. I imagine a lot of times when people are contributing to the GME and AMC threads, all participants are thinking “why aren’t they understanding what I am saying? I’m only trying to help them!”, frustrating everyone further.

I think it’s important that people try to keep this in mind, and remember that there are other people on the other end of the screen, and try to empathise where they are coming from.

9 Likes

Well put and I generally agree :+1: The one thing I would say about people on forums though is the 2 ends you mentioned

Mooners - Them maybe meaning well and thinking of missed opportunities are still encouraging potential risk.

Bears - Are not asking to risk but encouraging to avoid risk.

Appreciate most have similar intentions :+1:

I’ve seen people lose money from false hope but never seen people lose money for not investing.

3 Likes

Well I would expect an answer as its in the T&C’s. I might not expect this on a forum but definitely in chat support should answer why they can’t fulfil the terms.

2 Likes

For what it’s worth, I personally have only seen people defending their own position. I haven’t seen anyone actively encouraging anyone to invest in any particular way. Rest assured I would be the first to call someone out if they did :wink:

3 Likes

Like I say most are well meaning but the whole cult like following and promotion is what worries many :+1: People may not say BUY BUY BUY, though many do, but they say things like join us APES at XXX or I never knew until xxx and similar things that sound like click bait at best and QANON at worst.

The irony is most who are fed up with the extreme views are actually invested and just want serious discussions :+1: I am actually sure if I deleted the words GME, APES, diamond hands and paper hands and replaced them with something else then most of the APES would be saying that sounds dodgy as hell!

I often point out the potential issues with the GME hype but also point out I hope it goes big and should be a GOOD stock that will hopefully pay for my Plus subscription. This approach some don’t like but I feel fine with that as my aim is to just balance the views for those who don’t follow intensively. I do have some GME and think it is a wise investment at the moment, if your wallet is OK for a risk as with any investment, but the potentially damaging false expectations are dangerous to some people.

On any stock discussion where someone says they think it will go more than just up they should put a clear disclaimer :+1:

4 Likes

First time I could read a valide explanation for this restriction, thank you for that…

Hidden? Or nobody felt it was worth replying too. Do you have anything further to add?

Yes some people do flag posts a bit premature but I would point out that there are more reasons :+1:

Notify staff privately

It’s Off-Topic

This post is not relevant to the current discussion as defined by the title and first post, and should probably be moved elsewhere.

It’s Inappropriate

This post contains content that a reasonable person would consider offensive, abusive, or a violation of our community guidelines.

It’s Spam

This post is an advertisement, or vandalism. It is not useful or relevant to the current topic.

Something Else

This post requires staff attention for another reason not listed above.

So looking at the above

Off topic - silly unless really wide of the mark
It’s inappropriate - not really
It’s spam - Maybe people see it as promoting another service?
Something else - This covers anything I can’t even imagine :+1:

Not saying I agree, just that the off topic you mention may actually be “off topic” :stuck_out_tongue_winking_eye: