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Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

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Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#101

Post by thecupisblue »

JohnJamesRambo wrote: post #66
Dem_Boys wrote: post #38

This whole Game Stop situation has made the power of the rich so obvious and disgusting. They temporarily shut down the market, banned the discord server, and are now preventing people from buying stocks on the most popular app used by small time investors. All of these moves hurt the small time investor trying to cash in on the next bitcoin-like bubble. This just creates more division, more disgust, and more of a cl…

Just invest in Bitcoin now, it is going to do the same thing in a few months. And it can’t be censored like this. I admire the gme crowd’s efforts but they are so misguided. Investing in zombie companies we actually hate is pointless. Yes you might bankrupt a hedge fund or two but the system will continue. Bitcoin was created for the disruption to the corrupt financial system that they are seeking.

And then the rich noted that, bought mining farms and turned bitcoin into their own playtoy.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#102

Post by [deleted] »

baybal2 wrote: post #78
speeder wrote: post #9

This sort of stuff will put people more and more on edge, there is the deplatforming going on, people asserted their power financially, and now getting that removed too, the powers that rule USA don't realize that soon the only tool left to common people is violence? Even more with some irresponsible newspapers blaming the whole thing on GamerGate and Alt-Right, effectively pushing away people that previously could b…

I've heard the talk that Robinhood website is an op by a financial fund called Citadel LLC. It may be considered market manipulation on their side well more solidly than some speculation on the internet, not to say a breach of brokerage contractual obligations.

[deleted]

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#103

Post by rvnx »

Schweigi wrote: post #53
rvnx wrote: post #7

Interactive Brokers now blocking purchase call and put options (even to institutional investors!) on $GME, you can only close a position. On the other side, Robinhood is asking for account to be funded with cash to execute the calls at expiration, or else they will liquidate your position :|

I just tested it with IBKR and was able to create a call buy order (exp 1/29, $500 strike) for a single contract. Info: Market was closed so the order wasn’t executed but it was accepted by the order system before i cancelled it.

I have a message: "Transactions in this instrument are limited to closing-only trades" @ Jan29'21 300 CALL GME.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#104

Post by vetinari »

the_drunkard wrote: post #61
ceilingcorner wrote: post #46

Earlier quoted context omitted.

It’s a pretty classic tactic in the history of conflict. By pushing your opponent into a tight position, you force him to strike first, thus giving you complete justification in your disproportionate response.

That tactic worked out well during the French Revolution...

That tactic backfired multiple times in history, for example https://en.wikipedia.org/wiki/Defenestrations_of_Prague

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#105

Post by shut_it_down »

voteflipper wrote: post #91
shut_it_down wrote: post #39

Earlier quoted context omitted.

One of Robinhood's main business partner is Citadel (RH sells their order flow to Citadel). Citadel is also the firm that has bailed out Melvin Capital, one of the hedge funds that took a huge short position in GME. Probably just a coincidence.

I keep seeing this pop up everywhere; Citadel != Citadel Securities

Same group of companies, the distinction is completely irrelevant.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#106

Post by DyslexicAtheist »

Step 0: Citadel pays Robinhood for order flow. Citadel gets to see RH's orders a few milliseconds before they're filled. Citadel may choose to front-run some of those trades.

Step 1: RH's customers and WallStreetBets start manipulating $GME. This is happening in the open.

-- https://twitter.com/toxic/status/1353890766800621569

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#107

Post by wongarsu »

mox1 wrote: post #42
wyldfire wrote: post #26

Can someone help me understand Robinhood's POV? This just seems so outrageous that there must be some sane rationale that I'm not seeing. Why do Robinhood, Reddit, Discord, etc feel like they have to respond to this? Whether the investments being made are responsible or not, it doesn't seem like it should be their place to intervene. If the hedge funds over-shorted GME and WSB recognized that and traded against that…

So FYI, the Reddit WSB "shutdown" was temporary and on purpose (by the mod admins) to clean up the page a bit. It was private for an hour or two and back up. Discord, not so. Looking at the financial backers of Discord, you can pretty quickly draw a link to the short sellers. Presumably some phone calls or dinners were had last night and strings were pulled to shut the discord down.

What you are describing would be Discord engaging in (potentially illegal) market manipulation.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#108

Post by coredog64 »

Dem_Boys wrote: post #38

This whole Game Stop situation has made the power of the rich so obvious and disgusting. They temporarily shut down the market, banned the discord server, and are now preventing people from buying stocks on the most popular app used by small time investors. All of these moves hurt the small time investor trying to cash in on the next bitcoin-like bubble. This just creates more division, more disgust, and more of a cl…

Read up on the story of the Piggly Wiggly short/corner.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#109

Post by Tenoke »

moocowtruck wrote: post #34

why would people use this site? it seems very unreliable, i tried with many attempts last night to signup and all I get are strange errors..why would i want to conduct serious business through them if they can't simply handle signups

Because it's the easiest way by far for someone with just a bit of extra cash to quickly start trading without paying much in fees.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#110

Post by batmenace »

baybal2 wrote: post #78
speeder wrote: post #9

This sort of stuff will put people more and more on edge, there is the deplatforming going on, people asserted their power financially, and now getting that removed too, the powers that rule USA don't realize that soon the only tool left to common people is violence? Even more with some irresponsible newspapers blaming the whole thing on GamerGate and Alt-Right, effectively pushing away people that previously could b…

I've heard the talk that Robinhood website is an op by a financial fund called Citadel LLC. It may be considered market manipulation on their side well more solidly than some speculation on the internet, not to say a breach of brokerage contractual obligations.

Not quite. Citadel is a very well known quant hedge fund. The main way Robinhood makes money (and can let people trade without commission) is by selling their customers order flow (legally) to Citadel. Citadel (legally) uses this customer information to, in the milliseconds before the customer, front-run the trade, buy the shares and sell them to the Robinhood users at a marginal profit.
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