Well, it's definitely a reward. But as I mentioned in my last reply, it's reward... | Hacker News

Hacker Newsnew | past | comments | ask | show | jobs | submit

		fairity on Jan 29, 2021 \| parent \| context \| favorite \| on: Robinhood denies claims that it sold GameStop shar... Well, it's definitely a reward. But as I mentioned in my last reply, it's rewarding the wrong behavior if our goal is efficient price discovery.

jMyles on Jan 29, 2021 [–]

I don't see how; it creates a disincentive to take short positions which are too low (good for price discovery) and provides a reward for discovering and outing them (good for price discovery).

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact