Equity Swaps Explained (and How They're Used in GameStop & AMC)

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  • Опубликовано: 30 ноя 2024

Комментарии • 75

  • @DaytradeWarrior
    @DaytradeWarrior  5 месяцев назад +4

    Download my Stock Selection PDF 🍏 www.warriortrading.com/stock-selection-guide-gift/

  • @Bhob138
    @Bhob138 5 месяцев назад +6

    Lack of transparency makes me wish all stocks where on blockchain with smart contract orders, these middle men would struggle in a transparent market.

  • @645524pasto
    @645524pasto 5 месяцев назад +5

    New pro warrior member here. I must say that I'm impressed by the level of quality education you provide to free users and, more over, to members.

  • @Jikkyy678
    @Jikkyy678 4 месяца назад +2

    Ross thank you for such a clear, well produced explanation! It is amazing that some retail traders can make some regardless of the advantages Stock Market provides for Hedge & Institutional Traders.

  • @DNADNA-pw3sp
    @DNADNA-pw3sp 5 месяцев назад +2

    Ross I came into a conclusion my self that , A slow and cold market is like a road full of cars. when the road is stacked with cars no way you will press the gas because it’s risky, instead we will ease off and move slowly when there’s a chance to do a basic movement. In a hot market the road is empty sometimes so it’s the time to step up to the plate and press the gas.

  • @majanone
    @majanone 4 месяца назад +1

    Thanks for this. Just love the way you break things down (especially the whiteboard move). Could you maybe do a video on CDO, CDS and swaps? It would be very much appreciated.

  • @geraldsellers9096
    @geraldsellers9096 5 месяцев назад +7

    You got it mastered Ross you get the money and lock it up then make an informative video.

  • @allwedoistwin
    @allwedoistwin 5 месяцев назад +2

    Ross taking us to school every single day! ❤❤❤

  • @erikc2489
    @erikc2489 4 месяца назад

    This is the best video I’ve seen on equity swaps. Thanks for doing this!

  • @mattperry8830
    @mattperry8830 5 месяцев назад +4

    Ross, doesn't this infuriate you? We have no access to a fair and transparent market anymore.

  • @oOo-Della
    @oOo-Della 5 месяцев назад +3

    Wow, I finally understand this!!! Thanks!!!

  • @chance2302
    @chance2302 5 месяцев назад +1

    0:02 This is very cool but ANVS had a short squeeze over 125% in the 1:15-1-30pmish time frame. Still fairly strong during this entry. Timestamp 1:43pm est.

  • @stockstalker3984
    @stockstalker3984 5 месяцев назад +1

    Quad witching days - 3rd Friday of March, June, September & December

  • @alwayssadbuttruthful
    @alwayssadbuttruthful 3 месяца назад

    good summary and video
    ill plug this around. i think its done well.

  • @pasqualegiuliano7989
    @pasqualegiuliano7989 5 месяцев назад +1

    Slow day today, ANVS provided a small gain but in hindsight, I got out too early @ 9.39. Currently trading at 10.60… oh well hope everyone’s day was good!

  • @spunbearing
    @spunbearing 5 месяцев назад +3

    This is how the housing market crashed in 08.

  • @bonifacegomes9735
    @bonifacegomes9735 5 месяцев назад +1

    This was a great lesson for us. Many thanks Ross, I was looking for such information for long time. Happy 4th.

  • @techbasic1115
    @techbasic1115 4 месяца назад

    Great explanation, thank you! Question: why do the swaps have to be beholden to the quad witching days? Couldn't the swaps be dated something else? And not have to participate in the tug of war?

  • @alextrigger8199
    @alextrigger8199 5 месяцев назад +2

    Really good educational piece. Thanks Ross!

  • @oOo-Della
    @oOo-Della 5 месяцев назад +1

    Oh man, that Cramer clip sounds like what RK is doing 😮

  • @bradmeltonrealtor386
    @bradmeltonrealtor386 5 месяцев назад +1

    This was a great episode, thank you for laying all that out. Happy fourth!

  • @ajgiov
    @ajgiov 5 месяцев назад

    This explains the pre split battle for $180 on gme perfectly

  • @LaLa_Bunny33
    @LaLa_Bunny33 4 месяца назад

    Super informative, thank you. This would have gone over my head if I hadn’t seen The Big Short-great film!

  • @myo3387
    @myo3387 5 месяцев назад +1

    Thank you, Ross

  • @kingtigercrownestate9102
    @kingtigercrownestate9102 4 месяца назад

    Is this how naked shorting is done because it sounds like it is?

  • @KASUN_M
    @KASUN_M 5 месяцев назад +1

    So if you cant find info on swaps do you use IO as an indication big players?

  • @zachariahadams
    @zachariahadams 3 месяца назад

    Would the lender perhaps hedge with a different stock?

    • @DaytradeWarrior
      @DaytradeWarrior  3 месяца назад +1

      Yes they could

    • @zachariahadams
      @zachariahadams 3 месяца назад

      @@DaytradeWarrior 😐 DPZ looks totally more stable than the S&P with some fine dividends. Until it's not.

  • @Elliott42069
    @Elliott42069 5 месяцев назад +3

    Did you hear that everyone? When GME is squeezing to infinity because of hedge fund swap shenanigans, just remember what Ross told you, "STEER CLEAR"

    • @charlesdarnall7867
      @charlesdarnall7867 5 месяцев назад +1

      He’s done really well and proved it with his small account challenge. There is money to be made elsewhere in the market. I play GME exclusively but I know better than to bet my house on it. You can get lucky on these meme stocks, but you can also just as easily be unlucky. The hedge funds control the price and they have for over three years not to say we won’t ever win, but I’m no diamond hander, I’m a trader, I like to make money.

    • @valrium1971
      @valrium1971 5 месяцев назад +1

      I dont understand how people are still calling GME a meme 😂

  • @broxxironsmith8547
    @broxxironsmith8547 5 месяцев назад +2

    Market is not rigged at all.

  • @wormwood6424
    @wormwood6424 5 месяцев назад +1

    Very informative xxx

  • @WolfeJames504
    @WolfeJames504 5 месяцев назад

    So they are the same as CFDs?

    • @DaytradeWarrior
      @DaytradeWarrior  5 месяцев назад

      More or less except that CFDs can trade almost like stocks where a broker lets you practically sim trade. Swaps are customized contracts between an investment bank and a hedge fund. They aren’t tradable securities.

  • @worldwargates8416
    @worldwargates8416 5 месяцев назад

    is it the same as a CFD?

    • @yesitsme1366
      @yesitsme1366 5 месяцев назад +1

      What I was also thinking... is it not?

  • @moeafz3370
    @moeafz3370 5 месяцев назад +1

    Why did you not post daily recaps in the past couple of days?

    • @DaytradeWarrior
      @DaytradeWarrior  5 месяцев назад +6

      Today will have a recap, ydsy I incorporated it into the main video for the trades on DTSS

  • @charliemcgrain
    @charliemcgrain 5 месяцев назад

    But how does the Investment bank "hedge" without moving the price against the hedge fund?

    • @MrDeGuise
      @MrDeGuise 4 месяца назад

      By moving it the same way

    • @charliemcgrain
      @charliemcgrain 4 месяца назад

      @@MrDeGuise That does not make sense, the investment bank (IB) has to take the "opposite" position in order to hedge. If the fund goes short the IB would have to go long. What 'fund' would take that bet if they knew the IB would have to move the market against them, which would be the only way to hedge, right?

  • @Lukeggw
    @Lukeggw 5 месяцев назад

    So what happens with the contract (equity swap), if the hedgefund goes bankrupt? He can‘t pay the investment bank, but is this really a risk for the investment bank? He doesn’t get one payment (which the bank would deserve and which might be big), since the Hedgefund can’t pay, but that’s it, right? Or am I missing something?

    • @RobertMcLennan-f2v
      @RobertMcLennan-f2v 5 месяцев назад

      If the investment bank doesn’t own the shares then they are on the hook for the difference. Look up barings bank nick Leeson. And if the investment bank doesn’t have enough assets to cover the trade. They go bankrupt. Look up long term capital management and what happens to unwind their being on the wrong side of the market.
      GME shares could be halted and the regulators set a price they trade at until everything is unwound. Investor beware.

  • @BigcountryReactions
    @BigcountryReactions 5 месяцев назад

    These need to be outlawed

  • @Sosi288
    @Sosi288 5 месяцев назад

    Kind like CFDs for big players...

  • @quwane
    @quwane 5 месяцев назад

    can somebody leave their top analysis indicators and concepts of combinations in there? i'm a beginner and am not exactly sure what to look for yet

    • @DaytradeWarrior
      @DaytradeWarrior  5 месяцев назад

      Our webinar is a great place to start! It's free to join, and you get a digital copy of Ross's best selling book "How To Day Trade" just for attending. You can see more information and sign up here - www.warriortrading.com/free-day-trading-class/
      This will give you an idea of how Ross teaches, and provide a better understanding of what we offer at Warrior Trading. Plus, Ross gives attendees an awesome opportunity to join the community!

  • @GabboGVA
    @GabboGVA 5 месяцев назад

    How is this legal?

  • @TimeFlies-d8b
    @TimeFlies-d8b 5 месяцев назад +23

    equity swaps should be banned

    • @nickdunn7362
      @nickdunn7362 5 месяцев назад +5

      Yes. And shorting. How do we find true value of something with of market deals, and less than 100% transparency?

    • @ccc3
      @ccc3 5 месяцев назад

      ​@@nickdunn7362 Shorters have an incentive to uncover fraudulent or poor quality companies, so that also benefits other investors. Shorters take infinite risk with limited upside, so if anything investigative shorters make the markets more efficient

    • @TimeFlies-d8b
      @TimeFlies-d8b 5 месяцев назад +5

      @@markshah6213 exactly the point. Instead, you would be treating the sick or building renewables or working a farm. You know, stuff that is useful to society

    • @taylorwilloughby9194
      @taylorwilloughby9194 5 месяцев назад +4

      if a hedge fund uses a startegy, odds are, it should be banned 🤣

    • @TimeFlies-d8b
      @TimeFlies-d8b 5 месяцев назад

      ​​@@taylorwilloughby9194hedge funds thrive on liquidity and too much liquidity is not useful to society because it starts building jobs around it just like building jobs around excessive bureaucracy

  • @augustusbus5344
    @augustusbus5344 5 месяцев назад

    I averaged down and held too long losing 6% of my account. past 4 days have been red going to trader rehab and in the simulator for the rest of the week minimum

    • @ridual
      @ridual 5 месяцев назад

      yeah the market has been weird for me

  • @rfdm7270
    @rfdm7270 5 месяцев назад +1

    No trade day for me😔

    • @ridual
      @ridual 5 месяцев назад

      same

  • @BigcountryReactions
    @BigcountryReactions 5 месяцев назад

    So basically we need to go after the investment bankers

  • @drilonosaj9479
    @drilonosaj9479 5 месяцев назад

    So this is how archegos were able to hide thier posutuons from the banks

  • @zeuszz8722
    @zeuszz8722 5 месяцев назад

    more please
    of thje same content

  • @MrDeGuise
    @MrDeGuise 4 месяца назад

    This is direct market manipulation. No doubt.

  • @ThomasRobert-xb4yf
    @ThomasRobert-xb4yf 5 месяцев назад +1

    First! :) Ross the Best

  • @deejay4837
    @deejay4837 5 месяцев назад

    A la Billy Hwang......

  • @shawn544
    @shawn544 4 месяца назад

    Man this is some super shady tihs!

  • @caseyjones3522
    @caseyjones3522 4 месяца назад

    why is this crap even legal? like seriously....this kind of thing is what puts the market in jeopardy

  • @RecepAslan-lo9ok
    @RecepAslan-lo9ok 5 месяцев назад

    Rvsn