This story has so many twists. I just bought some today to raise the middle finger after I noticed politicians batting for the hedge funds.
I was confident I would lose it all, but now I am actually thinking this will go to court and I could make some money.
Robinhood is automatically initiating GME sell orders on users' behalf
41–50 of 316 posts
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#42This feels like RH is going to go under if they don’t make this move? Are they holding a lot of risk by not doing this or something? And what repercussions would they face, surely they’ve flagged that risk and are doing it anyway.
This is blatant anti-competitive behavior on the part of Robinhood and Citadel.
Ultimately, they know that their SEC Fine will be less than the $50B+ in losses they face from their irresponsible naked short selling.
Did we learn nothing in 2008? Are we just going to continue to allow wall street to get away with fleecing everyone else in America / the world?
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#43For 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…
OK, but they are almost certainly also trading on margin right?
You trade with robinhood's money, then they can decide not to lend it to you anymore for nearly any reason they want. ¯\_(ツ)_/¯
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#44I saw this on Twitter and couldn't find any sources to confirm that the e-mail screenshot is real. Take this with a pinch of salt, it might be fake.
Blue checkmarks seem to confirm this: https://twitter.com/dreamwisp/status/1354865709998723072 edit: My bad, it's "just" cancelling their orders, not selling anything on their behalf.
A canceled buy order is very different from an automatic sale. Buy orders can be canceled all the time for various reasons, though in this case it's likely Robinhood's well-documented purchase restrictions.
Also that user does not have a blue check.
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#45For 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…
Citation?
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#46The only not silly response to that silly situation would be to GME to quickly sell enough stock to stabilize the price at some reasonably high valuation and them maybe use money from that to do some stock buybacks later if it falls to an unreasonable low level.
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#47How bad for RH is this exactly, if some people affected weren’t margin trading?
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#48[deleted]
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#49> 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.
I see. I think that's a critical piece of context missing in that tweet: "Note: these particular shares were bought on margin. Buying on margin is borrowing money from a broker to purchase stock"
I thought RH was forcibly selling a customer's stocks that the customer had previously purchased with their own money.
Re: Robinhood is automatically initiating GME sell orders on users' behalf
#50> 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.
Well they now have 1 star on both app stores and can say goodbye to their upcoming IPO. While it is true their rules may have specified such a situation (I'm not a lawyer and not sure how legal this is), they are still a platform that rely on user trust, and they just destroyed any they had. You can't really call yourself "robin hood" when you bow over to the first big guy that shows up.