You can only reduce your margin by reducing the risk on the trade. If you are reg t, work the formulas for the margin call. If you are Portfolio margin, work the formulas for that.
There’s no loyalty in this business. The moment the smart kids get some money, they will ditch Robinhood.
However, until then, all those college kids generate some payment for ordeflow (whether explicitly or implicitly)
Market makers and they are trading 100s of thousands of contracts. If someone traded against you it’s because either 1. Their models saw edge in trading against you or 2. You are reducing risk against a position they don’t want.
Probably to make it easier to understand traders who have an edge vs those who are lucky and caught a big trend. The latter will show pnl similar to a guy who grinds it out everyday.
He was buying a railroad and had a derivatives trade blow up against him. His credit rating was cut.
This time he has no such constraints. He’s full of dry powder, or so it seems.