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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

#513

Post by TeMPOraL »

herewegoagain2 wrote: post #399
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…

What would "they" do if they were enemies of Robin Hood? Short Robin Hood stock? Or send contract killers?

If by "they" you mean Wall Street - pull the data sharing contracts that underpin Robin Hood's business model in the first place.

If by "they" you mean WSB - for now, they just nuked RH's app in Play Store, but they're already calling for a class action lawsuit.

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

#514

Post by shakezula »

josho wrote: post #457
vergessenmir wrote: post #365

Earlier quoted context omitted.

This is so true. It's all connected. It's probable that Reddit, Discord, RobinHood have all received calls to disrupt retail traders from political players or financial backers. There's no evidence of this, the truth is we'll never know, but how its most obvious reason. If only RobinHood would live up to its namesake. It is alarming that "soft" circuit breakers are being used to target retail traders on exchanges. I…

I look forward to the investigations on market manipulation that RH, Schwann, and TD did by not allowing their customers to trade on that stock. Or is it normal for brokers to independently halt trades on stocks they deem too risky?

Idk if it is or not but it feels like crazy levels of illegal to be able to just halt buy orders like that. Imagine the inverse, if they just halted sell orders on a stock they were deeply invested?

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

#515

Post by 0x008 »

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…

It's basically corruption and shows why we need free markets and why it is a problem that exchanges are private companies.

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

#516

Post by miloignis »

ChicagoBoy11 wrote: post #431
frongpik wrote: post #303

Earlier quoted context omitted.

What matters is the lower 50% (aka the poor) get to see, for a brief moment, how the machine really works. WallSt will get their way this time, but I doubt those people will just live as usual with the gained knowledge.

We all collectively saw Wall St. dip into our pockets in 2008 yet here we are, aren't we?

I believe the government and taxpayers made money on the bailout, see sources like: https://projects.propublica.org/bailout/ The financial institutions got themselves in a bad spot, and instead of failing they were helped out, but they paid it back with interest.

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

#517

Post by 0x008 »

thinkingemote wrote: post #76
eli_gottlieb wrote: post #45

Earlier quoted context omitted.

Luckily, I used my Vanguard account instead of making a Robinhood.

Now people are moving away from Robinhood is it only a matter of time before the other platforms do the same?

Even european brokers now forbid buying gamestop/AMC.

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

#518

Post by notahacker »

folkrav wrote: post #252
kmeisthax wrote: post #175

Earlier quoted context omitted.

If I were running a financial brokerage I'd totally do this, too. It's not a matter of "helping my hedge fund broker friends", it's a matter of "how do we keep the SEC off our backs". Remember: Robinhood is already being charged with securities law violation for giving their customers a raw deal on order execution. We usually don't see distributed market manipulation like this, but I wouldn't be surprised if a shitto…

I'm still shit at these things, but so far, I seriously cannot understand how hedge funds get away with "shorting", but people doing the same thing in reverse is market manipulation. From this (admittedly naive) POV, this sounds like double standards.

The same thing in reverse isn't market manipulation. Buying call options or the stock itself is legal.

What can be market manipulation is to collude with others to move a stock price not because you believe it is worth a different amount, but because you predict others will react to the movement you create. That applies to collusion involving shorts (bear raids) too. Proving the collusion and the artificial price bit is the difficult bit

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

#519

Post by gashad »

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.

I just learned about the Citadel/Robinhood connection from this https://marketsweekly.ghost.io/what-happened-with-gamestop/, which the author https://twitter.com/alexisgoldstein/status/13546053632874864... explained as "Why it's not Robinhood/Reddit vs. Hedge Funds. It's Hedge Funds vs. Hedge Funds vs. Wall Street, with Robinhood as a fig leaf". The sidebars in the article explain a lot of the lingo.

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

#520

Post by liuliu »

cashewchoo wrote: post #396
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 worked in proprietary trading for about half a decade. I think the biggest thing that the lay-person doesn't understand is that thinking of hedge funds (and other proprietary firms), banks, exchanges and ATS's, retail brokerages, the SEC, and lawmakers as all being either one entity or all being on the same side is just absolutely incorrect. They all need each other, but by and large they are not friends. Some clai…

Why allow sales in that case?
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