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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

#141

Post by pfortuny »

vlkr wrote: post #120
zarkov99 wrote: post #57

Sure. Robinhood got a call from someone very powerful in their circle, politely asking them to stop the amateur plebes from interfering with their professional market manipulation. We are taking about people commanding titanic amounts of capital and (indirect) regulatory power. Robinhood then had the choice, do we make enemies out of these people or do we just screw, er, I mean protect, our customers? Unburdened by a…

Source?

“You know: we can buy market information elsewhere”.

This is not a source but.

The problem with huge power is that one loses control of the size of one’s decisions.

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

#142

Post by aynyc »

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 don't know IBKR's system, but most OMSs will accept an order unless it's blatantly wrong such as invalid stock. It's the execution engine that really enforce the rules.

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

#144

Post by axlee »

batmenace wrote: post #110
baybal2 wrote: post #78

Earlier quoted context omitted.

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.

That doesn't sound correct: https://robinhood.com/us/en/support/articles/how-robinhood-m...

- Rebates from market makers and trading venues

- Robinhood Gold

- Stock loan

- Income generated from cash

- Cash Management

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

#145

Post by sokoloff »

noncoml wrote: post #54
sokoloff wrote: post #13

Earlier quoted context omitted.

It's absolutely paternalism, IMO. I'm less sure whether I think it's a good thing or not (because I think people buying new positions in GME at this point are unlikely to end up happy about that in mid-Feb.) I'm all for "let 'em play" in general but this is not going to end well for a lot of folks...

Why are you so quick to assume that people don’t know what they are doing? Is it so hard to believe that at this point buying GME is more about activism than making profit? “When you ain't got nothing, you got nothing to lose”

People who believe that they can only buy GME via specifically Robinhood, I'm not sure I see them as sophisticated investors or even "understand what they're doing".

I think that people should be able to spend their money however they want. I also don't mind when regulators say "liquor stores are blocked from having one-day specials the day that welfare benefits are paid."

If Robinhood believes that their customers are better served by blocking certain transactions, I trust Robinhood to make that call (and suffer the goodwill or ill-will that results).

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

#146

Post by carstenhag »

zxcvbn4038 wrote: post #84

This is interesting, can individual brokerages refuse to trade individual securities or to only allow them to be sold. Unless the SEC authorized these actions I think it arguably makes the brokerages liable for losses and is arguably market manipulation. Transferring securities positions between brokers is relatively costly and time consuming - takes at least a day and there is usually a $40-70 fee - so is a temporar…

What, really? In Germany transferring securities is free, but it takes weeks or months for all securities and the correct prices to be transferred.

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

#147

Post by jahaja »

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…

[dead]

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

#148

Post by batmenace »

pdevr wrote: post #50

99.99% (or more) of people who buy lotteries, lose ALL their money. However, government allows anyone to buy them. There is no meaningful restriction for an assured destruction of wealth for most of those who buy them. While this GME/AMC run will not end well for many people, restricting people from buying those stocks - whether it is through actions of trading platforms or governing agencies - smacks not just of pat…

Im guessing their argument would be that while a majority of people know what they're doing / the risk they are exposed to, a lot of people are seeing the gains online right now and are jumping into it blindly. Big difference between WSBers buying in at 10-30$, and people from all around the internet now buying in at 300$

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

#149

Post by nrmitchi »

noncoml wrote: post #54
sokoloff wrote: post #13

Earlier quoted context omitted.

It's absolutely paternalism, IMO. I'm less sure whether I think it's a good thing or not (because I think people buying new positions in GME at this point are unlikely to end up happy about that in mid-Feb.) I'm all for "let 'em play" in general but this is not going to end well for a lot of folks...

Why are you so quick to assume that people don’t know what they are doing? Is it so hard to believe that at this point buying GME is more about activism than making profit? “When you ain't got nothing, you got nothing to lose”

> Why are you so quick to assume that people don’t know what they are doing?

Screenshot lists floating around the internet yesterday pointing out exactly what buttons in your app to hit in order to buy GME options is the first piece of evidence that makes me that thing, perhaps, a large number of people don't know (or understand) what they're actually doing.

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

#150

Post by ARandumGuy »

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.

It may displace the billionaires who run banks, hedge funds, etc... and replace them with billionaires who own huge mining farms.

Bitcoin doesn't solve any of our problems. It just shuffles around who's in power.

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