Watched this when it first came out, I was a beginner trader so I only knew so much. Rewatching it now that I work for a firm, I view EVERYTHING in a very different light
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
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!!!
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.
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
Industry must be so much more fun for people that understand finance and the market
I hope I can help. I'm thinking of revisiting these videos for beginners
@@InvestOramathat would be great I’m rewatching now and loving the show but the finance stuff can be a little complex
It’s incredible… but I’m a professional trader lol
@jordanvanmeter1020 hey Rishi we recognised you
Watched this when it first came out, I was a beginner trader so I only knew so much. Rewatching it now that I work for a firm, I view EVERYTHING in a very different light
Retail trading is already tough to grasp this os really on another level. I have to watch this couple of times
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 ?
Now I'm confused ... But I think he's short via goldman
Being fooled by a colleague is a good reason to be p*d off, no?
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
love it, keep up the good work
Thank you! I need inspiration... Is there any other scene I could analyse?
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!!!
i actually thought the trader referencing the wrong regulation was pretty spot on tbf :P
Did I get it wrong? Or do you mean the trader getting the regulation wrong makes it realistic?
@@InvestOrama I think he means the latter
@@zoellazayce6796 ah that's quite advanced writing then
Cool analysis. Thanks for this video
Glad you liked it! There are a few more episodes of Industry analyzed on this channel
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.
@@GC-ps9mn you haven't watched but your guesses are right!
It's an interesting twist I don't want to spoil it
@@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.
@@GC-ps9mn actually I've got a video about it ($3bn from a tennis court)
th-cam.com/play/PLXTR2SfmGn34iKZC2ZfB-y1gW3LImIr1_.html&si=A21e-7HTn1L4XnEs
@@InvestOrama thanks, I'll check it out.
@@InvestOrama Not the same stock - thats Rycan
i watched this scene countless times and i was always wondering who on earth is Dodd Frank...THANK YOU!
There are a lot of authentic industry references in there
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.
Retail trading... do you mean what's happening on Gamestop?
@@InvestOrama I mean retail trading in general, the whole speculation scheme.
@@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
Retail trading just means ,,small scale individual trading”
Isn't what harper did illegal? All calls on the trade floor are recorded as well..
Illegal? Not sure? Because she's helping the client instead of the bank, that's not a problem in common law. Non-compliant 1000% sure
@@InvestOrama great way to ruin all your political capital in the work place
absolutely@@anoriginalnick I can only think of one reason to do it: if you're about to go to work FOR the client
@@InvestOrama haha true. The dream is to get poached awayyy
@@anoriginalnick Not happening for Harper in S2... but there's S3 coming, so maybe?
How Harper didnt get fired for this is beyond me
Pierpoint's HR is useless
Not a good explainer at all man. C’mon.
Oh no... What should I improve
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
All i'm hearing is how the ordinary person is getting f'd
That's definitely a possibility - although this is a bit like Gamestop where the little guys are taking on the big ones
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.
I think she'll be back in season 3 though. She's interesting because she's bad!
@@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
Maybe Rishi needs a spinoff
Her becoming a ruthless evil bitch is kinda the point I think