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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

#281

Post by sgpl »

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…

Obviously I'm speculating but one of the largest investors in Robinhood's last round was a hedge fund.

As others have pointed out, Citadel's market making arm is their largest source of revenue + Citadel's hedge fund recently invested a large amount in Melvin Capital to help shore up Melvin's capital base after their loss.

Unfortunately unless Robinhood insiders leak or post their rationale behind this decision, we'll never really know what happened behind closed doors.

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

#282

Post by sampo »

bko wrote: post #136
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…

> the powers that rule USA don't realize that soon the only tool left to common people is violence? Do you honestly believe this? Somehow we'll go from not being able to buy certain stocks to violence? Banning collecting rain water on your own property didn't do it. Abject failure of politicians keeping drinking water clean didn't do it? Not being able to buy cheese from unpasteurized milk didn't do it. Can't grow a…

> This is small potatoes.

Do you know how the Arab Spring started? A municipal official bullied a street vendor who was selling produce from a cart roadside.

https://en.wikipedia.org/wiki/Arab_Spring#Events_leading_up_...

https://en.wikipedia.org/wiki/Mohamed_Bouazizi

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

#284

Post by chaostheory »

bko wrote: post #136
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…

> the powers that rule USA don't realize that soon the only tool left to common people is violence? Do you honestly believe this? Somehow we'll go from not being able to buy certain stocks to violence? Banning collecting rain water on your own property didn't do it. Abject failure of politicians keeping drinking water clean didn't do it? Not being able to buy cheese from unpasteurized milk didn't do it. Can't grow a…

We live in interesting times. This is surreal coming from Ray Dalio

"I believe we are on the brink of a terrible civil war (as I described in The Changing World Order series), where we are at an inflection point between entering a type of hell of fighting or pulling back to work together for peace and prosperity..."

https://twitter.com/RayDalio/status/1353408208082112512

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

#286

Post by swiley »

When was Nokia being pumped? I bought calls on it for something I saw on HN a week ago which is what you're supposed to do and have been watching WSB and no one was talking about it.

Also: thinkorswim just let me submit an order to buy more NOK anyway. Heh, this is what you get for using robinhood.

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

#287

Post by cpascal »

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.

Can Citadel exercise any sort of discretion on what order-flow they'll fill? Can they legally tell Robinhood that they will no longer fill orders for GME?

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

#288

Post by spamizbad »

bko wrote: post #136
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…

> the powers that rule USA don't realize that soon the only tool left to common people is violence? Do you honestly believe this? Somehow we'll go from not being able to buy certain stocks to violence? Banning collecting rain water on your own property didn't do it. Abject failure of politicians keeping drinking water clean didn't do it? Not being able to buy cheese from unpasteurized milk didn't do it. Can't grow a…

What nightmare of a HOA do you have that bans rain barrels?

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

#289

Post by kasey_junk »

GVIrish wrote: post #199
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.

If that were the case then why didn't RH put out a statement saying exactly that? They haven't even put out a tweet.

Why didn’t they tweet a policy decision?

One explanation is that this is a systematic behavior, part of their software is seeing market conditions it can’t execute into and hitting this case. If it’s not sustained or is happening only during particular microbook states the best thing to do is let the software behave as designed and let it stabilize.

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

#290

Post by NoOneNew »

jb1991 wrote: post #247
bko wrote: post #136

Earlier quoted context omitted.

> the powers that rule USA don't realize that soon the only tool left to common people is violence? Do you honestly believe this? Somehow we'll go from not being able to buy certain stocks to violence? Banning collecting rain water on your own property didn't do it. Abject failure of politicians keeping drinking water clean didn't do it? Not being able to buy cheese from unpasteurized milk didn't do it. Can't grow a…

> Banning collecting rain water on your own property What does that refer to?

It's literal. There are a number of states that make it outright illegal to collect rain water even if you're doing it to water your own garden during droughts.
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