Most likely margin calls.
I agree. Wall street is desperate but they are not that desperate. Don’t do crazy things on margin.
Robinhood is automatically initiating GME sell orders on users' behalf
11–20 of 316 posts
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#12Is this the prelude to https://www.politico.com/magazine/story/2014/06/the-pitchfor...?
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#13He was margin called. This is literally how margin works, has nothing to do with GME or the Robinhood furor.
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#14> due to the unreasonable risk involved in brokering your position, we have closed your X shares of GME for an average price of Y What in the world?? "In order to protect you from yourself, we have taken away your free will. Thanks!"
you are using their brokerage. their rules. free will has nothing to do with it.
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#15[deleted]
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#16Robinhood's behavior here is wicked and wrong. Yes, Robinhood's EULA technically allows them to do this wicked thing. The same EULA says that Robinhood can't be sued over it or anything else.
It's about time we talk about how it's not in the public's interest to allow companies to put arbitrarily user-hostile terms in their user agreements.
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#17It is in their T&Cs that they can do this if your account is trading on margin. If not, then it feels like there's a potential for a class action lawsuit.
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#18Wow if true, this is a huge violation of user trust
from robinhood? are you kidding, or what?
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#19For anyone saying, "Most likely trading on margin"
Remember:
This morning Robinhood conspired with Citadel to halt trading amid a short ladder sell to drive the price lower, allowing shorts to cover their losses with no competition.
This is blatant market manipulation and anti competitive behavior, and must be stopped.
Why does everyone insist on protecting billionaires who insist on playing the game with a different set of rules than the rest of us?
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#20> due to the unreasonable risk involved in brokering your position, we have closed your X shares of GME for an average price of Y What in the world?? "In order to protect you from yourself, we have taken away your free will. Thanks!"
Yes, that is how it works when you buy stock on margin and do not have the cash to cover. When the price dips, the risk increases to the broker, and so they may liquidate your position to cover.