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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

#731

Post by warkdarrior »

whimsicalism wrote: post #713
beachwood23 wrote: post #673

Earlier quoted context omitted.

I don't think this was Robinhood's choice. Robinhood doesn't actually execute any trades. They sell user's trade orders to Citadel, a trade executor. Citadel then buys the shares on the market, and sells them to Robinhood for a slight markup. It's how Robinhood offers trades for $0 fees. You pay pennies more per share, but don't have to spend $5 per trade. Citadel, and other trade executors, are refusing to buy share…

I'm just not really sure I understand the narratives being thrown around right now, and I'd like to think I understand the economy somewhat Melvin Capital closed out their short position yesterday with a large loss - and Citadel helped cover that loss. As far as I know, Citadel and Melvin Capital no longer are holding any short positions in Gamestop. So what do they have to gain, by your narrative, from suppressing t…

If SEC decides at some point that this was pump-and-dump scheme (even crowdsourced), the Citadel may become liable for enabling that scheme, even if they do not run it themselves.

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

#732

Post by lovehashbrowns »

kgwgk wrote: post #631

https://twitter.com/AOC/status/1354833285386543105 "Committee investigators should examine any retail services freezing stock purchases [...] especially those allowing sales, but freezing purchases." Apparently she would prefer that people were blocked from selling their holdings.

That is not what that tweet is saying. She is saying that particular pattern, sales allowed but purchases are restricted, is especially deserving of an investigation.

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

#733

Post by iso1631 »

chronolitus wrote: post #328
coredog64 wrote: post #108

Earlier quoted context omitted.

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

a link for the lazy (twitter thread): https://twitter.com/dollarsanddata/status/135456107992655053...

So the moral of the story is you can't win against the machine

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

#734

Post by whimsicalism »

hntrader wrote: post #668
fairity wrote: post #654

Earlier quoted context omitted.

Is there a source for the 40% figure? It seems to allude that the fund in question is Citadel.

Yeah it must be, they gave funds to Melvin Capital which took a beating on GME, and make money off Robinhood's customer flow.

Giving funds to Melvin so they can close their short != having a short position in GME

There are like 30 comments getting this confused in this thread.

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

#735

Post by skyde »

beachwood23 wrote: post #673
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…

I don't think this was Robinhood's choice. Robinhood doesn't actually execute any trades. They sell user's trade orders to Citadel, a trade executor. Citadel then buys the shares on the market, and sells them to Robinhood for a slight markup. It's how Robinhood offers trades for $0 fees. You pay pennies more per share, but don't have to spend $5 per trade. Citadel, and other trade executors, are refusing to buy share…

thanks for explaining your a hero

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

#737

Post by djvu9 »

krapp wrote: post #706
djvu9 wrote: post #699

I have to say whoever voted for Biden voted for this. A Trump admin would have done the same but at least we could get some angry journalists yelling at them. See what we get now? A bunch of a* lickers.

>A Trump admin would have done the same but at least we could get some angry journalists yelling at them. See what we get now? A bunch of a* lickers. But Trump supporters have been telling everyone for years that journalists are all a*lickers for corporations and the left. Why would they suddenly have integrity today if Trump were in office now? Surely they would just toe the line of their corporate masters of find s…

I never mentioned integrity. Integrity is nonexistent in the previous admin, the current admin, the big tech, and the mainstream media. And they working together is much more scarier than they fighting each other. I wish you could have seen this after what happened to Parler and now the GME stock saga.

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

#738

Post by MrMan »

danmg wrote: post #478
gorgoiler wrote: post #374

WSB reminds me of the heyday of LulzSec. As questionable as LulzSec / anon’s hacking was, it was also exciting to watch in real-time (10 years ago!) Of course they were caught and of course they turned out to be regular nobodies. Everything is normal and banal in the end. If WSB doesn’t turn out to be a regular ole pump and dump then I’d be very surprised. The only thing that’s weird about it is that not even the cur…

It's not a pump and dump. It's a short squeeze. It's nothing new. It's the plot of the 80s movie "Trading Places." A hedge fund bought short position futures contracts for 120% of the available stock on the market. That's the underlying reason the price is going up: because they're forced to somehow buy more than 100% of the available Game Stop stock because they agreed to sell it to the people on the other end of th…

no the pump and dump part means that WSB arguably exists as a kind of ion cannon like Anon used to be, where if you can convince a sizable number of community members to commit to a proposed course of action, you can create a reflexive effect that you can harness to your advantage. creating a stock price event, on purpose, using a community like WSB, and profiting, by exiting the trade is a "pump" and "dump."

it is ancillary that a short squeeze might be an attendant and inciting event. you could do this with any stock as long as the supply is limited compared to the demand created by the manipulation of trader sentiment. the short squeeze just amplifies the effect

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

#739

Post by Loughla »

snowwrestler wrote: post #187
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…

The way to make money in a bubble like this is to sell right before the pop. At some point the word will go out that it’s over—“we won”—and everyone will rush to sell their GME and take profits. It’s not possible for all those people to succeed. Broker apps like Robinhood will be absolutely overwhelmed with sell orders, many of which will run into technical problems and/or no counter parties. A lot of people are goin…

>Companies learned that helping their customers shoot themselves in the foot can come back to bite them, even if it was all legal and what customers wanted at the time.

What a dismissive, awful, terrible way to phrase this.

Having parents that were nearly the victims of one of those upside down mortgages, it's not that simple. They didn't ask for a 400k mortgage. They asked for a home they could afford. When the bank, that they have trusted their entire life, says, 'you can afford this much per month', they had no reason to question that.

They're unsophisticated people, who trusted the system not to fuck them. And that's precisely what it tried to do.

While I get that people need to take control of their own money, when the people responsible for looking after your money, the actual, literal bank tells you you're good, why wouldn't you believe them?

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

#740

Post by JW_00000 »

lordnacho wrote: post #384
snowwrestler wrote: post #187

Earlier quoted context omitted.

The way to make money in a bubble like this is to sell right before the pop. At some point the word will go out that it’s over—“we won”—and everyone will rush to sell their GME and take profits. It’s not possible for all those people to succeed. Broker apps like Robinhood will be absolutely overwhelmed with sell orders, many of which will run into technical problems and/or no counter parties. A lot of people are goin…

> Broker apps like Robinhood will be absolutely overwhelmed with sell orders Shouldn't be possible. Most of the messages to the orderbook, by orders of magnitude, would be market makers doing add/cancel, which isn't something that comes from RH anyways. How often is one particular user going to send in an order? 10 times a day if they're particularly busy? Doesn't touch the sides. The internet facing gateways can be…

Robinhood experienced several outages in March 2020 because of large volumes of trading.

[1] https://www.cnbc.com/2020/03/09/robinhood-app-down-again-dur...

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