Investing.com - The game is not over: Promotions - Chatting Assistrators for Wall Street: Gamestop (NYSE: GME), AMC Entertainment (NYSE: AMC) and others, on Friday, continued the race after the brokers began to relax restrictions on trade in these instruments .
In particular, the relaxation was introduced by Robinhood and Trading 212 trading platforms.
>> To RobinHood filed a claim due to the ban on the purchase of Gamestop shares
As of 15:30, Gamestop shares are growing at 75.44% and cost $ 339, 65, although earlier growth reached almost 100%. AMC has risen in price by 46.58% - up to $ 12.65, the NASDAQ data is evidenced.
On the eve of the promotion of the video game retailer fell by 44%, and AMC is 57% after a number of brokers restricted the possibility of playing an increase in revalued tools.
>> brokers stop purchases on overvalued shares
They had to do this, writes Bloomberg after the Central Clearing Center of the stock market demanded large amounts of collateral from brokerage offices, which, "for several weeks could facilitate spectacular jumps in stocks such as Gamestop. The publication also reports that the RobinHood trading platform said on Thursday, which urgently collects $ 1 from existing investors.
Analysts are waiting for an increase in volatility in the market, meanwhile, futures for leading European and American indices again went to the "red zone". So, in particular, as of 15:50 Moscow time {{8873 | Dow Jones 30} futures loses 0.65%, Futures on S & P 500 - 0.73%, and futures on NASDAQ Composite - 0.94%.
Suddenly, a new "power center" was formed in the stock market, which was not at all on Wall Street. Communities of retail traders, concentrated on REDDIT type platforms (more than 4 million users), are becoming a big problem for professional players.
"The herd learned to use Wall Street technologies against her," the main investment director of ETF TRENDS David Nadig said in an interview with FINANCIAL Times.
The situation, as Bloomberg notes, the presidential administration of Joe Bayiden, Chairman of the Fed Jerome Powell and the American Senate, who is going to hold a hearing is already concerned.
Hedge funds, realizing the problem, began to analyze the forums of retail traders to confront from attacks.
As Forbes reminds, the current situation was caused by the post of one of the participants of the Reddit community - WallStreetBets, which stated that "boomers" from hedge funds are confident that the Gamestop business is dying, and are trying to make money on reducing his shares. The forum participants began to massively buy paper, which forced the shortists to close short positions to minimize losses, as a result of Gamestop shares rose 881%.
One of the major hedge funds - Melvin Capital lost 30% of assets on these "games" and was forced to ask for assistance in the amount of $ 2.7 billion among investors.
>> Hedge funds lose billions due to reddit traders
Meanwhile, the daily "jumping market" may eventually provoke a correction that many investors have long been predicted by taking into account the overheated by some sectors of the American market.
Text prepared Alexander Schnitnova
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