$AMC Entertainment (AMC.US)$ Correct me if i am wrong. i have seen a couple of youtuber mentioned all shorts have to be covered. however isnt that even if margin call happen, they shorted 100mil shares, the system wouldnt buy in 100mil shares. it will only buy back a specific amount till a point that the margin is within the threshold? and not every single shares?
3
8
$AMC Entertainment (AMC.US)$ Does this current platform loan out shares we own to the HF? since its stated as Margin account although we uses cash on the purchase. Just curious.
6
4
jimjimljm OP xxLittle Angelxx : that's what i think. unless the hedgefund is bone dry in terms of assets that will lead to a direct bankrupt. if not they could just like buy in 10 mil shares to stay within the threshold and continue interest payment?
jimjimljm OP : if hedgefund borrowed 1 mil shares and short it. in today's pricing, they would have cashflow of 58mil. it could have last them quite a while in interest payment with that money i think.