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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

#151

Post by twox2 »

joe_the_user wrote: post #82
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 $…

A stock market is a high stakes gambling system. The smart and the powerful win. You'll never limit winners to just the smart. If you someone did for a period of time, those smart people would become powerful and decide to limit other smart people. But so what if you did allow just smart people win? Most people aren't that smart and you'd wind-up with a fleecing. So making this game fair isn't particularly in the ave…

I disagree with you.

"It's more in the average person's interests to have an index-traded-funds go up a reliable amount each year."

You are saying that people are too dumb to decide what to do with their own money, and that's not your call.

The reason this is a crime against everyone is because there's allegedly a "free market", but moments like this show that the emperor has no clothes and that in fact that's not the case.

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

#152

Post by ineedasername »

mikestew wrote: post #98

Yeah, brokerages will do that if the stock takes a big drop like it did today. Oh, did you not read that part of your margin agreement? According to thread, some are just now getting to that part. Those same folks shouldn't have been trading GME on margin. If it's any consolation, I've had Fidelity, IB, et. al., do the exact same thing when a trade turned sour. Difference is, I didn't run to Reddit to display my igno…

I though they would generally give you the opportunity to provide more collateral for your margin though. Or am I wrong on that?

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

#153

Post by wyre »

captainarab wrote: post #60
markdown wrote: post #56

Earlier quoted context omitted.

> And what repercussions would they face Nothing worth worrying about. Every single case in the financial sector over the past two decades has resulted in fines that are a fraction of the profits. I mean, you had banks laundering money for cartels, Malasians were looted, etc etc... every single time they fine the culprits a tiny fraction of their profits. The US has made criminal activity profitable, even if you get…

100% agree. Pretty sad to see most of HN willfully ignoring this fact and jumping to the defense of Hedge Funds and the billionaire class.

Reading HN this whole month has been disheartening after reading so many comments defending the insurrection and Parler.

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

#154

Post by firebaze »

TheHypnotist wrote: post #135
firebaze wrote: post #100

Smelled like scam, is a scam. So glad I didn't fall into the robinhood trap, I was really close to. Edit: yes this comment isn't related to the linked article.

You should really read up on finance before making any of these decisions. It's no scam, it's margin.

I didn't lose a cent, i made over 60% the last few days. If i was using robinhood, i'd be blocked from doing that.

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

#155

Post by gnud »

tw04 wrote: post #139
tibbon wrote: post #112

Earlier quoted context omitted.

I honestly didn't read the agreements on Robinhood. Before you call me stupid or irresponsible, I'm going to say practically no one reads these agreements, and even fewer understand them. The NYT a few days ago had an opinion piece on how no one reads the TOS for things like this. A very choice line: > A 2012 Carnegie Mellon study found that the average American would have to devote 76 work days just to read over tec…

>When I bought my house, the attorneys sat down with me and had me read through and explained to me every single term of the purchase agreement and my mortgage, checking that I understood them. Absolutely no one has done this for Facebook, throwing a few hundred into Robinhood, etc. It's not worth it, and the terms change with such frequency that it would be outdated immediately. I still have my binder from my closin…

Really? I _know_ I read everything, both for my loan and for the purchase, when I bought my apartment. It wasn't really that much. It took a few hours. I didn't read every law that the contract referred to, but I read the contract itself.

Is a house really that much worse when it comes to paperwork? Or is the US just that much worse with this stuff?

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

#156

Post by mikestew »

dbnoch wrote: post #120
mikestew wrote: post #103

Earlier quoted context omitted.

Fidelity and every other brokerage of which I have knowledge would let you do the same thing (get into a bad trade, and then liquidate your position when you exceed margin limits). This isn't a "Robinhood" thing, this is an "ignorant gamblers who shouldn't be allowed anywhere near a margin account" thing.

except for the line where they prevented trading on said stock.

I believe you mean they prevented buying. Obviously the positions could be liquidated (sold).

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

#157

Post by smachiz »

tibbon wrote: post #112
mikestew wrote: post #98

Yeah, brokerages will do that if the stock takes a big drop like it did today. Oh, did you not read that part of your margin agreement? According to thread, some are just now getting to that part. Those same folks shouldn't have been trading GME on margin. If it's any consolation, I've had Fidelity, IB, et. al., do the exact same thing when a trade turned sour. Difference is, I didn't run to Reddit to display my igno…

I honestly didn't read the agreements on Robinhood. Before you call me stupid or irresponsible, I'm going to say practically no one reads these agreements, and even fewer understand them. The NYT a few days ago had an opinion piece on how no one reads the TOS for things like this. A very choice line: > A 2012 Carnegie Mellon study found that the average American would have to devote 76 work days just to read over tec…

This isn't just TOS though. It's a pretty short and easy agreement that you're accepting.

https://cdn.robinhood.com/assets/robinhood/legal/RHF%20and%2...

You'll find a similar concise and clear statement from every broker when you enable margin trading.

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

#158

Post by ineedasername »

AnHonestComment wrote: post #111
thebean11 wrote: post #101

This is probably legit, unlike delisting it. You are taking a loan from them with the understanding that they can (in some circumstances) liquidate your investment to lower their own risk. This absolutely seems like one of those circumstances.

A margin call on a stock you halted trading in smells like fraud. It’s like the bank banning selling your home then repossessing it when the value falls. Crooked entirely.

Especially if they don't at least provide the opportunity to collateralize the position so the user can avoid selling at a loss if they want to try & wait out the trade ban.

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

#159

Post by jscheel »

tibbon wrote: post #112
mikestew wrote: post #98

Yeah, brokerages will do that if the stock takes a big drop like it did today. Oh, did you not read that part of your margin agreement? According to thread, some are just now getting to that part. Those same folks shouldn't have been trading GME on margin. If it's any consolation, I've had Fidelity, IB, et. al., do the exact same thing when a trade turned sour. Difference is, I didn't run to Reddit to display my igno…

I honestly didn't read the agreements on Robinhood. Before you call me stupid or irresponsible, I'm going to say practically no one reads these agreements, and even fewer understand them. The NYT a few days ago had an opinion piece on how no one reads the TOS for things like this. A very choice line: > A 2012 Carnegie Mellon study found that the average American would have to devote 76 work days just to read over tec…

You are saying that you willfully entered into a loan agreement without reading the terms of the contract. I just don't see that as a defensible position. I don't know how Robinhood does it, but TD Ameritrade was very clear with me what the terms of my margin account were. It's one thing to ignore TOS on an application, it a whole other world to sign a loan agreement without reading the fine print.

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

#160

Post by [deleted] »

southeastern wrote: post #149
mikestew wrote: post #98

Yeah, brokerages will do that if the stock takes a big drop like it did today. Oh, did you not read that part of your margin agreement? According to thread, some are just now getting to that part. Those same folks shouldn't have been trading GME on margin. If it's any consolation, I've had Fidelity, IB, et. al., do the exact same thing when a trade turned sour. Difference is, I didn't run to Reddit to display my igno…

>Difference is, I didn't run to Reddit to display my ignorance to the world. Erm isn't the point of communities like Reddit to discuss? The implication that there's a certain class of people who are suited to stocks and a certain class that isn't is exactly why people are so impassioned about this right now.

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