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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

#151

Post by Hendrikto »

justaman wrote: post #93
JohnJamesRambo wrote: post #66

Earlier quoted context omitted.

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.

I'm hesitant to invest in an alternative currency that the CCP is one of the largest holders of as a means to stave off corruption.

> Of all the countries in the world, China had, by far, the largest international reserves in August 2020, with 3.46 trillion U.S. dollars in reserves.

Maybe you shouldn’t use USD either.

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

#152

Post by jrochkind1 »

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.

How much do you think Citadel has made off of GME in the last week?

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

#153

Post by sircastor »

agilob wrote: post #77
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.

It's a police tactic called Kettling https://en.wikipedia.org/wiki/Kettling

I’m kind of embarrassed to say it never occurred to me that the goal of kettling was to encourage a non-violent protest to violence. Thinking on it, it makes a sort of sick sense. If the people are actually violent the rules go out the window and you can use whatever force you deem necessary. And the police always consider themselves the superior group.

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

#154

Post by nickjj »

I don't think the title of this post does the story justice.

The buy UI widget under GameStop's stock symbol has been replaced with: "This stock is not supported on Robinhood."

It seems the ability to buy the stock has been completely removed, however they left in the ability to sell.

That is much different than "limited" because other platforms only prevented options trading but still allowed purchasing it with funds you already have.

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

#155

Post by pfortuny »

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

Mitsubishi Electric != Mitsubishi.

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

#157

Post by thonos »

I too bought those shares with the anticipation that the price will go up due to the hype generated. I made a careful decision to do so by estimating that the traffic on /r/wsb will increase because of the news coverage, which causes people to buy those shares. I don't live in the states and don't use Robinhood, but a local broker that charged me a good bit for US stock trading.

Robinhood halting trading tanked the price in afterhours immediately, and it will likely crash further on opening because of this. As a result, I too will lose money.

Sure that's what you get with market gambling and speculation but I find it ridiculous that this company now singlehandled crashed the stock and results in losses for global independent investors like myself.

Being able to only sell shares and not buy is directly playing towards the hedge funds. It will drive the price down and positions might get closed. If what reddit did was market gambling and manipulation, what robinhood is now doing is the same, just in the opposite direction.

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

#158

Post by tim333 »

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…

From Schawb

“It is not uncommon for us to place restrictions on some transactions in certain securities in the interest of helping mitigate risk for our clients,”

from Massachusetts secretary of the commonwealth

“It is very clear to anyone looking at the numbers that the whole marketplace is being manipulated here,” he said.

I imagine Robinhood's thinking is similar

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

#159

Post by rswail »

As I understand it, the hedge funds had naked shorts. That's illegal. If they did, what is happening to them serves them right.

Even if they didn't, a "short squeeze" is perfectly legal. If the short sellers think the stock is overpriced, and there's others that think its underpriced, then both sides are placing their bets and will deal with the result, either by making or losing a lot of money.

This is not a "pump and dump", this is an unco-ordinated short squeeze. A bunch of people decided to take the short sellers on.

Whether everyone involved understands the risk of a short squeeze to them by going long is a prime case of "caveat emptor". They're not even buying calls, they're actually buying the stock.

The short sellers are being squeezed mercilessly and will eventually have to bail out. At that point the stock will tank back to a more realistic position and the people that went long too late and didn't exit will also lose lots of money.

Of course, they won't crystalize those losses until they sell.

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

#160

Post by coredog64 »

kasey_junk wrote: post #58

I don’t have a data feed available to verify but it’s at least possible there is no one on the other side of the order book for these symbols so Robinhood can’t execute any more buy orders. Judging this as a policy decision from a 1 sentence tweet and some screen shots seems premature.

Why do you have to get all rational when we can stoke conspiracy theories?
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