TD Amertrade margin and sales order rules on AMC shares
TD Ameritrade changed AMC shares to 100% margin which made the shares non marginable in June: 100% margin requirement for long positions.
200% margin requirement for short positions.
You may keep the shares in a margin account but AMC shares are effectively a cash position. Many account holders can not transfer their AMC shares to cash because they need the shares to maintain the $25K day trade rule balance.
TD Ameritrade (USA) will not allow you to block the lending of AMC to short sellers in margin accounts. The shares are a cash position that TDA (USA) is more than capable of lending the shares to HF/short sellers.TDA(USA) routes orders though CITADEL and receives payment for order-flow.
TDA (USA) also will not allow a sell order on AMC shares for over $125.00. TDA (USA) sells $145 options on AMC but will not allow a $145 sell order. A sell order on the AMC shares would block the the lending of the shares to HF/short sellers. I used to place a sell order on all my shares in my old broker of $9,999.00 to block lending overnight. If the shares were sold in a short squeeze, well I got $ 9,999.00.
A lot people myself included love the thinkorswim platform.I want to transfer the AMC shares to Fidelity but am afraid to have the shares floating in the transfer for who knows how long.
via r/wallstreetbets https://ift.tt/3qhG8Zq
July 22, 2021 at 04:14PM