Increasing Margins

N

newwurldmn

It looks like a lot of brokers are increasing their margin haircuts ahead of the election. Robinhood announced that they will be increasing as well.

Any thoughts on if this will have a significant impact on the markets. Any thoughts on if this will cause some deleveraging as the retail space has become a more significant part of the equities market.
 
To a certain degree, it has probably occurred already. The determined gamblers will be levering up thru beta and long calls.

The subsequent lowering of margin requirements should have a stimulative effect. I wonder how fast that will occur.
 
xandman said:
To a certain degree, it has probably occurred already. The determined gamblers will be levering up thru beta and long calls.

The subsequent lowering of margin requirements should have a stimulative effect. I wonder how fast that will occur.
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markets are at all time highs and tech is strong so far no effect.
 
newwurldmn said:
markets are at all time highs and tech is strong so far no effect.
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From a broad perspective, everything this month is garbage trading. This what I have seen:

- Trump with covid reaction
- Trump will not negotiate stimulus.
- Trump pedals back.
- Stimulus prospects before election looks bleak (Why even believe there was going to be a deal before elections in the first place? It's going to be a winner take all.)

I think the elections results are going to be very important for some beaten down value sectors. Tech? Well, that's always bullish. But, a rotation to value could cap those valuations.

Disclaimer: I don't know squat.
 
newwurldmn said:
It looks like a lot of brokers are increasing their margin haircuts ahead of the election. Robinhood announced that they will be increasing as well.

Any thoughts on if this will have a significant impact on the markets. Any thoughts on if this will cause some deleveraging as the retail space has become a more significant part of the equities market.
More...
All my Online brokers finally caught up to IB starting Monday. RH also joined the club i heard.
 
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