Gamestop trading action pits powerful against powerless

A popular rebellion, organized by the powerless against the powerful. It might have failed in Washington, but it certainly seems to be working on Wall Street.

Driving the news: The market value of GameStop closed at more than $10 billion on Tuesday, on record volume of more than $26 billion.

How it works: Thanks to Robinhood and other stock-trading apps, trading options in GameStop (or BlackBerry, Bed Bath & Beyond or any other smallish company Wall Street traders have bet against) is easy, fun, and carries an irresistible commission of exactly $0.

The bottom line: Short-selling — betting that a company’s stock is going to fall — is a crucial element of efficient markets. But, thanks to Reddit, it has also never been more dangerous.

This content was originally published here.