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When GameStop (GME) exploded upwards, short sellers faced "reverse margin calls" (short squeezes). However, many retail investors who bought GME on margin at the top ($480) saw the stock fall to $100 within days. Those who bought on 2:1 margin were entirely wiped out, even though the stock was still up 300% from the previous year.
The broker sells 100 shares at $21 ($2,100). Margin Call
AI responses may include mistakes. For financial advice, consult a professional. Learn more When GameStop (GME) exploded upwards, short sellers faced
Margin Call File
When GameStop (GME) exploded upwards, short sellers faced "reverse margin calls" (short squeezes). However, many retail investors who bought GME on margin at the top ($480) saw the stock fall to $100 within days. Those who bought on 2:1 margin were entirely wiped out, even though the stock was still up 300% from the previous year.
The broker sells 100 shares at $21 ($2,100).
AI responses may include mistakes. For financial advice, consult a professional. Learn more