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Robinhood is automatically initiating GME sell orders on users' behalf

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Re: Robinhood is automatically initiating GME sell orders on users' behalf

#61

Post by short_sells_poo »

captainarab wrote: post #19

For 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…

Do you have any evidence of this or are you just spamming every thread with the same accusations?

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#62

Post by paulgb »

Jouvence wrote: post #38
paulgb wrote: post #9

Earlier quoted context omitted.

Yep. I’ll repeat what I said in another thread: It’s really kind of ironic. People are knee-jerk blaming RH for closing margin positions because they didn’t fully understand how they work and the risks involved. Simultaneously, the same people are blaming RH for stepping in the way of what very certainly would have turned into a bad trade for a lot of people. I don’t take RH’s side but it’s hard to see a winning play…

Nonsense. People are allowed to make bad trades every second of every day without protection from the platform; but now they develop a conscience and save people from themselves? If this is true, RH and other platforms pulling smiliar stunts should be sued out of existence. Might not be a bad idea to significantly increase taxation on derivatives trading too.

It’s easy to develop a conscience (or the functional equivalent) when you know regulators and press have you in their sights, so yes.

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#63

Post by ttt0 »

aqme28 wrote: post #44
ttt0 wrote: post #31

Earlier quoted context omitted.

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.

Yes, I noticed it and already edited my comment, my bad. The person below is a blue checkmark.

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#64

Post by Alupis »

paulgb wrote: post #9
jcfrei wrote: post #3

Most likely margin calls.

Yep. I’ll repeat what I said in another thread: It’s really kind of ironic. People are knee-jerk blaming RH for closing margin positions because they didn’t fully understand how they work and the risks involved. Simultaneously, the same people are blaming RH for stepping in the way of what very certainly would have turned into a bad trade for a lot of people. I don’t take RH’s side but it’s hard to see a winning play…

This is the same RH that extended Margin accounts to complete amateur investors with practically no vetting before-hand.

People that think they'll get rich off pocket-change investments, are not in a position to understand trading on margin, nor it's risks.

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#65

Post by leesalminen »

freeone3000 wrote: post #58
leesalminen wrote: post #33

Earlier quoted context omitted.

Could you expand on what the risk to Robinhood is here? From what I understand, users purchased stock for money. What is Robinhood holding here that can create risk for them?

Some users purchased stock for money. Others purchased the right to buy stock later. Still others trade on margin, or, borrowed money. Robinhood offers all three, and it's not clear which this is, since it conflates the first and the third in the UI.

Ahhh, I see, understood. If RH (or any brokerage) tried to sell shares of stock I owned outright (i.e. exchanged USD for a share at market price) I would be livid. But it sounds like this article is maybe overblown.

Thanks for the clarification!

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#66

Post by captainarab »

akavi wrote: post #34
captainarab wrote: post #26

Earlier quoted context omitted.

Will repeat what I said above: 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…

> This morning Robinhood conspired with Citadel to halt trading Do you have evidence that happened, or are you arguing from pure cui bono circumstantiality?

It's in the logs, go see for yourself?

GME purchases blocked this morning on apps where Citadel is the clearing house.

SOMEONE proceeds to ladder short sell GME to cause a massive price dump.

Users are margin called from previously profitable positions (without being able to provide buying pressure needed to fight against a ladder short sell)

Shorts are able to unethically cover your position.

Read into this... it's all over the news and verifiable with documentation from various regulatory agencies.

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#67

Post by captainarab »

captainarab wrote: post #26
jcfrei wrote: post #3

Most likely margin calls.

Will repeat what I said above: 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…

I don't know why I am being downvoted for sharing the truth...

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#68

Post by captainarab »

arawde wrote: post #45
captainarab wrote: post #19

For 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?

It's in the logs, go see for yourself? GME purchases blocked this morning on apps where Citadel is the clearing house.

SOMEONE proceeds to ladder short sell GME to cause a massive price dump.

Users are margin called from previously profitable positions (without being able to provide buying pressure needed to fight against a ladder short sell)

Shorts are able to unethically cover your position.

Read into this... it's all over the news and verifiable with documentation from various regulatory agencies.

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#69

Post by hartator »

captainarab wrote: post #54

This is blatant anti-competitive behavior on the part of Robinhood and Citadel. As i say elsewhere - this margin call was FORCED by RH because they blocked users ability to buy shares as Citadel + others were ladder short selling to artificially lower the stock price of GME, forcing the margin call. This is horrific, criminal, and should be prosecuted. Ultimately, they know that their SEC Fine will be less than the $…

> Did we learn nothing in 2008?

Yep, that we are going to have to pay their losses.

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#70

Post by ehsankia »

snorrah wrote: post #47

How bad for RH is this exactly, if some people affected weren’t margin trading? https://twitter.com/themaxburns/status/1354874931092348933

The automatic sell aside, isn't just restricting trades on the given stocks just bad enough already?
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