On January 29 at 16:40 the well-known Russian bank and broker Tinkoff Investments informed its clients that on February 2 at 17:00 short positions on shares would be forcibly closed.
”And“ Bed, Bath and Beyond ”. Many clients of the service were outraged by the fact that the broker refers to the “high volatility” of these shares. What volatility is is well known to everyone who has invested in stocks or other assets at least once, but what is “High” volatility for service users remained a mystery.
– As an investor, I do not understand what “high volatility” is and why it is the reason for the forced closure of positions. Volatility is a natural property of the market. That’s why he and the market, that prices go up and down, isn’t that normal? I do not understand what is meant by the word “high”. High, low are evaluative concepts, purely subjective. How much is it in percentage? In documents and agreements, these concepts are not disclosed in any way, in the agreement with the broker there is no definition of “high and low volatility”. The short squeeze happened on Thursday, and the broker announced the decision to close positions on Friday, a day later, when the stocks were calm. Why exactly these two papers? The same jumps were also on other shares, but Tinkoff did not close positions on them. – wrote one of the users on the site vc.ru.
Moreover, the decision to forcibly close investors’ positions was not caused by any external problems, for example, on the stock exchange, where Tinkoff Investments buys shares at the request of clients. The decision was made by the broker himself, as reported by a company employee. The specialist also said that positions will be closed for all clients, and not only for those who cannot cover their positions. In fact, the broker independently decided to close the clients’ positions without having any objective grounds for that.
Working through brokers who are intermediaries, investors are never insured against such events, since at certain times the broker’s interests intersect with the interests of clients. To avoid the risk of unscrupulous intermediaries, the investor needs to work directly with the exchange, which also allows you to withdraw assets from the site and safely store them.
However, investors immediately have a question, how to work directly with the exchange, if this requires a broker?
Regulated tokenized asset crypto exchange Currency.com allows clients to trade top cryptocurrencies, tokenized shares of the world’s largest companies from the US, Europe, China, Russia and other countries, stock indices, ETFs, currencies, precious metals, commodities and bonds directly, without intermediaries. The advantage of Currency.com is that by buying a token-share of any company, you can withdraw it to a cryptocurrency wallet with support for the ERC-20 standard. The Ethereum blockchain allows you to safely store your assets off the exchange without fear of various kinds of forced closing of positions, since only the investor himself decides when to bring token shares back to the exchange and sell.
In addition to the ability to buy and sell assets, leveraged trading is available on Currency.com, which allows investors to hedge price risks using capital that is ten times less than the value of the purchased assets. A variety of assets on a crypto exchange makes it possible to form a diversified portfolio and correctly distribute risks.
It is possible to replenish an account on a cryptocurrency exchange using a bank transfer or a Visa and MasterCard in Russian and Belarusian rubles, euros and dollars.
Currency.com activities are regulated by the Decree of the President of the Republic of Belarus “On the Development of the Digital Economy” and other legislation of the Republic of Belarus. Currency Com Limited is DLT-licensed by the Gibraltar financial regulator, and is also registered with American FinCEN and Canadian FINTRAC as Money Services Business.
You can learn more about the platform and its capabilities on the official website: https://currency.com/.
ATTENTION! Investments related to risk of losing all investment… Past investment success does not mean future success.