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Transfer Stocks Out of Your Robinhood Account

robinhood.com

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Re: Transfer Stocks Out of Your Robinhood Account

#171

Post by gerash »

PragmaticPulp wrote: post #122
ditonal wrote: post #13

The RH apologists are going on long winded explanations about clearing houses (and to some extent there’s elements of “it’s too complex for your little brain”). But even to the extent it’s true, if I put in 5k from my checkings into RH and buy stock, why does Rh need all this liquidity to get orders filled? I understand turning margin accounts off, but that’s it . Past that, at best robinhoods business model is highl…

One of Robinhood’s innovations was that they gave everyone a margin account, but hid the details. When you transfer money in, Robinhood doesn’t actually get that money until a couple days later. They allow you to buy stock immediately, but that happens (transparently) on margin. Robinhood is loaning you the money to make it happen. Likewise, when you buy or sell a stock, the trade doesn’t settle for t+2 days. Robinho…

They only allow you to invest up to $1K immediately even if you transfer larger amounts. to be able to use the rest you need to wait.

Re: Transfer Stocks Out of Your Robinhood Account

#172

Post by cambalache »

adrr wrote: post #82
rubyist5eva wrote: post #58

Earlier quoted context omitted.

Market manipulation is a crime. Stopping purchases so short sellers don't lose all their money is pretty obvious manipulation.

Market manipulation is the wrong crime and requires actual transactions. People keep saying he committed a crime but have failed to provide an actual law he violated. Or they point at some SEC violation which aren’t crimes and handled in civil court.

>Market manipulation is the wrong crime and requires actual transactions.

You can be charged for securities fraud just by tweeting baloney if you are important enough. Ask Mr Musk. This is 100X worst. So no, you dont need actual transactions to be charged with fraud.

Re: Transfer Stocks Out of Your Robinhood Account

#174

Post by PragmaticPulp »

TuringNYC wrote: post #156
PragmaticPulp wrote: post #122

Earlier quoted context omitted.

One of Robinhood’s innovations was that they gave everyone a margin account, but hid the details. When you transfer money in, Robinhood doesn’t actually get that money until a couple days later. They allow you to buy stock immediately, but that happens (transparently) on margin. Robinhood is loaning you the money to make it happen. Likewise, when you buy or sell a stock, the trade doesn’t settle for t+2 days. Robinho…

>> When you transfer money in, Robinhood doesn’t actually get that money until a couple days later. They allow you to buy stock immediately, but that happens (transparently) on margin. The solution would be to disallow this feature, not to stop trading of certain tickets on all accounts, most of which are seasoned and funded

The cost of trading meme stocks also increased exponentially due to regulatory requirements.

Full explanation with math here: https://twitter.com/kralctrebor/status/1354952686165225478?s...

Also, it’s not realistic to expect them to completely retool their entire app and infrastructure in a matter of hours to disallow margin-based trades of only certain securities. If this was a long-term concern I’m sure they’d do exactly what you suggested. However, this even ramped up in only a couple of days. Let’s be realistic about what they can re-engineer, test, and deploy to end users in that timeframe.

Re: Transfer Stocks Out of Your Robinhood Account

#175

Post by tedfernau »

ditonal wrote: post #13

The RH apologists are going on long winded explanations about clearing houses (and to some extent there’s elements of “it’s too complex for your little brain”). But even to the extent it’s true, if I put in 5k from my checkings into RH and buy stock, why does Rh need all this liquidity to get orders filled? I understand turning margin accounts off, but that’s it . Past that, at best robinhoods business model is highl…

Well maybe common sense tells us how the system should work, but in a regulated industry in the real world the technical details matter. Hope we can get to the ideal solution after enough of these fiascos. Robinhood needs to be at the cutting edge to keep their customers.

Re: Transfer Stocks Out of Your Robinhood Account

#176

Post by mason55 »

boatsie wrote: post #160
PragmaticPulp wrote: post #122

Earlier quoted context omitted.

One of Robinhood’s innovations was that they gave everyone a margin account, but hid the details. When you transfer money in, Robinhood doesn’t actually get that money until a couple days later. They allow you to buy stock immediately, but that happens (transparently) on margin. Robinhood is loaning you the money to make it happen. Likewise, when you buy or sell a stock, the trade doesn’t settle for t+2 days. Robinho…

If this were the core issue, they should have disabled new account creation or funding, right? Why could I open an account and buy Google stock, as it would also technically be on margin.

The requirements for Robinhoods collateral are partly based on volatility

Re: Transfer Stocks Out of Your Robinhood Account

#177

Post by truncate »

PragmaticPulp wrote: post #122
ditonal wrote: post #13

The RH apologists are going on long winded explanations about clearing houses (and to some extent there’s elements of “it’s too complex for your little brain”). But even to the extent it’s true, if I put in 5k from my checkings into RH and buy stock, why does Rh need all this liquidity to get orders filled? I understand turning margin accounts off, but that’s it . Past that, at best robinhoods business model is highl…

One of Robinhood’s innovations was that they gave everyone a margin account, but hid the details. When you transfer money in, Robinhood doesn’t actually get that money until a couple days later. They allow you to buy stock immediately, but that happens (transparently) on margin. Robinhood is loaning you the money to make it happen. Likewise, when you buy or sell a stock, the trade doesn’t settle for t+2 days. Robinho…

Is there a fees/interest for using that $1000 margin that comes with free account?

Re: Transfer Stocks Out of Your Robinhood Account

#178

Post by protastus »

PragmaticPulp wrote: post #122
ditonal wrote: post #13

The RH apologists are going on long winded explanations about clearing houses (and to some extent there’s elements of “it’s too complex for your little brain”). But even to the extent it’s true, if I put in 5k from my checkings into RH and buy stock, why does Rh need all this liquidity to get orders filled? I understand turning margin accounts off, but that’s it . Past that, at best robinhoods business model is highl…

One of Robinhood’s innovations was that they gave everyone a margin account, but hid the details. When you transfer money in, Robinhood doesn’t actually get that money until a couple days later. They allow you to buy stock immediately, but that happens (transparently) on margin. Robinhood is loaning you the money to make it happen. Likewise, when you buy or sell a stock, the trade doesn’t settle for t+2 days. Robinho…

> One of Robinhood’s innovations was that they gave everyone a margin account, but hid the details.

In the old days one would have to formally request margin. Then the broker would give you stern warnings, have you sign a form, mail you a nice booklet explaining margin, options and shorting. I assumed it was a legal requirement, but maybe not?

Re: Transfer Stocks Out of Your Robinhood Account

#179

Post by cocoa19 »

geoduck14 wrote: post #154
fbelzile wrote: post #60

Earlier quoted context omitted.

This is similar to thanking Google for bringing the cost of email down to $0. There sure is a lot of upside to the average user, but a lot of the costs are just shifted behind the scenes (data collection, privacy). I'm not saying it has no place in the market, but a more informed user might calculate the risk and decide to use a fee-based brokerage instead (like ProtonMail vs Gmail).

I had a Hotmail account before Gmail was a thing.

Maybe Gmail was not the first free email, but was definitely the first massively adopted free email with a very high storage capacity.

At Gmail's launch, Hotmail was offering only 2MB of free space, while Gmail was offering 1GB. At the time, that was a game changer, and how they captured a good chunk of the market.

Re: Transfer Stocks Out of Your Robinhood Account

#180

Post by ineedasername »

The most fascinating thing, to me, about all of this is the potential for large groups of retail investors to invest in a company not because it's doing well, or they think it's undervalued, but because they want it to do well-- investing with the specific intent to give it the resources needed to do well. Perhaps unintended, this seems to be the net result with AMC. A few days ago they probably wondered how to keep the lights on. Now they've sold some stock at a premium and have a lot more cash on hand to trudge along as (hopefully) vaccines mostly resolve their issues.

I can imagine the emergence of a different sort of activist investor: large groups that find distressed companies they really want to do well, and instead of the company getting eaten by a private equity shark, they're given the resources for a turn around. (Some-- many? -- would fail anyway)

I recognize this probably unrealistically optimistic, but I imagine some Occupy Wall Street veterans are having a big laugh right now either way.

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