Doge cryptocurrency can also be added to the list of Robinhood's halted buys for today.
Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
891–900 of 1001 posts
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#892Project Veritas is on the case:
Robinhood whistleblowers can hit us up at veritastips@protonmail.com or on Signal 914-653-3110
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#893Fully paid purchases, or just options?
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#894Ah cool so does this mean that all the other stocks are safe and will only make me money? Very cool of Robin Hood to protect me from ever being exposed to any risk like this. It’s just really cool to know that they remove the ones that can lose me money.
Tomorrow they are going to prevent you from selling stocks that are in the money.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#895Justin Kan (Twitch founder) is calling for Ken Griffin and Robinhood's co-founders to jailed.
> Just got a tip that Citadel reloaded their shorts before they told Robinhood to stop trading $GME.
> If this is true, Ken Griffin and the Robinhood founders should be in jail.
> This is class warfare.
See https://twitter.com/justinkan/status/1354856228661334017.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#896Can 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…
When markets move rapidly, and in GME’s case we are T-1 from opex, brokerages cannot manage risks effectively. They could actually be exposed quite a bit. With something like GME (probably an 8 sigma event) it could actually put Robinhood out of business.
It seems to me it's because "market makers" are a thing. Market making activities create billions in profits. But we are seeing the flaw in the market making algorithms.
Do we need market makers to let us always take a position in every single option when no real market for that option exists? I would argue no. It's completely artificial and they profit from it. If companies want to be market makers and profit from every single transaction, they need to be prepared to take a loss when the math doesn't swing their way.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#897Can 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…
Are they banning people from trading the stock or trading the stock on margin? On margin would be reasonable, if the volatility of the stock becomes very high, the broker is taking a credit risk on its client it may not want (plus suitability consideration). It may also make sense to restrict access to certain stocks if they are deemed too complicated/dangerous to retail investors. But I doubt the suitability would b…
They're not letting you open new positions in the stock or options on the stock. You can only close your existing position. Guaranteed way to make the price go down.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#898Can 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…
Execution risk that they can’t handle. When you buy/sell stock on Robinhood, they hold execution risk until they net out your position by transacting a large enough order on the market. In this situation they don’t know how to manage the execution risk on these trades, so they are losing money, so they don’t want to do them.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#899Interactive 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 :|
It's not only about options. You can't buy even 1 stock of GME on non margin account. I don't understand how it has anything to do with IB risk management.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#900Can 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…
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