Welcome back! yeah they really didn't do any effort to explain what's happening through the trade, but that makes the scene so real. Although as I watched it again I realized she had laid out the plan clearly
so, the situation is: Bloom shorted FastAid through Goldman, which technically means that he borrowed the sold shares from Goldman and has to pay them a borrowing fee for every day he is holding that short position - right? Because Goldman strongly advised him to stop-out, he couldn't increase his short position through Goldman. To help Bloom get a better price, Harper screwed over Richi by making him believe, Bloom wants to close-out his short through Pierpoint which means he has to by the amount of shares he is short from Richi in order to flatten-out his short at Goldman by passing over the shares to them which would end his short-trade - right? Richi fell for it and ended up buying the shares Bloom sold short to him (although Bloom sells shares he does not posses, Richi needs to buy them in order to could lend them). Now Bloom has a short-position in FastAid through Goldman and an additional short through Pierpoint - is this correct?
@@InvestOrama I think this is what really pisses Richi off: although he is fully aware that the overnight borrowing fees Pierpoint is receiving for holding the FastAid short-position with Bloom is easy money (and good money given the position-size of almost 16M shares), he now has these shares sitting on his book and he couldn't touch them because he has to lend them to Bloom. So, they are locked-up until Bloom returns these shares to close-out his short - and that means these FastAid shares absorb a good chunk of Richi's order book and limit his abilities to engage in other large trades... That's how crazy Harper's toying around with her own trader is! If you're doing this on a real trading-floor, you got fired faster than Trump fired candidates in the Apprentice!
I don't think bloom is short through Pierpoint 'cauz that would mean they borrow the stocks from them, which would mean fees for rishi no ? Here it is pretty clear that Rishi bought stocks that were already borrowed or on the verge of being borrowed no ? So they're just a part of the short but they're not the lenders right ?
Great video. Would be interested to hear about your personal experience in markets, for example the process of a client trading from a sales/trading perspective. Hearing how traders hedge, position etc would be really interesting.
Excellent suggestion thanks! There are a couple of videos here that explore the jobs in the front office and sales in particular but the sales / trading perspective is something worth digging further into
What I'm confused about is where did Bloom get all those shares to sell? He was shorting the stock so he wouldn't be holding any shares right? Did he buy a bunch of shares before this scene? Wouldn't buying that many shares cause the price to go up? If I understand it, what he's trying to do is to sell a bunch of shares to drive the price down. So he bought a bunch of shares not to close out his short position but in order to execute this trade? I haven't seen the series so maybe this is all explained further in the episode.
@@InvestOrama I am planning on watching it, I'm looking forward to seeing how it all goes down. It just seems to me that buying a bunch of shares first would drive the price up just as much as selling them later would. So his goal of driving down the price wouldn't work, it'd just even out in the end. What I'm guessing is he bought the shares originally to close out his short position but decided that he could actually use them to drive down the price further, thus profiting off his short position instead of losing money. But I only know a little about investment banking. Thanks for the reply.
Awesome video as usual. Quick question. Given markets are significantly more efficient than they were in the past, is there really much of a differentiable edge sales people can provide to hedge fund managers like Bloom?
Great question and I had a few about the sales jobs (I've got a previous video about it). Harper is a maverick!! The role of sales is not to push their OWN ideas, they'd use research, structuring, strategists and it's not just about trading. There's a whole bunch of prime brokerage services that the series ignore. For example: If he wants to short he needs to borrow first!!!
The more I listen to this the more I sense retail trading is super unethical at its core... and it is only legal because of the power of those who run it. So many companies (and therefore people) depend on bets, how a trader convinces a seller... or am I missing something? I know I sound so naive lol but I am still amazed that wars and trade are still accepted.
@@macroscopes speculation is a game, and there are rules, so I don't think it's unethical but I think it's stupid, you're much better off investing and trade as little as possible
No worries, you're explanations are based on the assumption that your viewers have specific trading/market knowledge- Perhaps give more anecdotes so non-finance people can grasp more easily.
@rahimzayd that's excellent feedback and I'm aware of it but have not figured out a way to do it (nor spend time to think about it) but I definitely want to so something that works for beginners
Still fall short from billions and the MC she just never did have any moments of greatness. Only luck and hand out opportunities. Man i love when she got fired in the last episode. Remove her and this show will go sky rocket.
@@InvestOrama hahaha Rishi is a way better character than her. Yeah i agree these some kind of a masochistic enticement in this series for some people hahahhaha
