Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Robinhood is automatically initiating GME sell orders on users' behalf

twitter.com

Post reply on HN
Print view View original

271–280 of 316 posts

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

#271

Post by ivalm »

vinay427 wrote: post #261
MuffinFlavored wrote: post #260

Earlier quoted context omitted.

https://www.marketwatch.com/story/gamestop-amc-trading-is-no... Not just discount brokerages.

There's a huge difference between limiting margin trading for GME and closing positions without asking a user or offering an option to put up collateral. Many brokerages did the former, and at least Schwab/Fidelity/TDA all seem to be otherwise up and running so retail investors can still buy and sell GME.

Closing without recourse during margin call if you are way below maintenance is normal operation. This is the problem with GME, it is extremely volatile and brokerages don't want to be left holding the bag when the bubble bursts and everyone who bought it on margin goes bust.

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

#273

Post by Jommi »

vinay427 wrote: post #264
Jommi wrote: post #186

Earlier quoted context omitted.

Because they are using an app with no fees. This is what fees get you on some other platforms.

Most major retail brokerages in the US have eliminated fees for stock trades. https://www.stockbrokers.com/compare

Thats not quite accurate - a lot of the brokerages have only introduced it commission free on certain conditions. For example IBKR still has other fees if you want to use any of their more advanced features.

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

#274

Post by MuffinFlavored »

vinay427 wrote: post #261
MuffinFlavored wrote: post #260

Earlier quoted context omitted.

https://www.marketwatch.com/story/gamestop-amc-trading-is-no... Not just discount brokerages.

There's a huge difference between limiting margin trading for GME and closing positions without asking a user or offering an option to put up collateral. Many brokerages did the former, and at least Schwab/Fidelity/TDA all seem to be otherwise up and running so retail investors can still buy and sell GME.

TD Ameritrade restricted buying from users not on margin.

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

#275

Post by [deleted] »

ptd wrote: post #265
paxys wrote: post #249

Earlier quoted context omitted.

If there's no evidence backing it then it is a conspiracy theory, whether coming from an anonymous Reddit post or from a billionaire's Tweet. I don't know Justin Kan's background but he could very well have his own angle behind all this, or just faulty information. And even if he is correct, he is saying something very different from the post I mentioned.

It seems clear to me that you don't become a billionaire by leaving evidence of your ill acts. Certainly not when the spotlight of the entire country is on you. If you don't mind me asking, do you interface with these kind of people? I don't and I'm wondering if you have some kind of insight I'm missing.

[deleted]

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

#276

Post by myrandomcomment »

ptd wrote: post #244
paxys wrote: post #232

Earlier quoted context omitted.

One of the top posts on WSB this morning was a supposed Robinhood engineer who overheard a call between their CEO and the White House instructing them to stop trading $GME. The /r/The_Donald comparisons seem apt at this point.

Justin Kan, founder of Twitch and Atrium(net worth over 9 figures) tweeted that he got a tip that Citadel(the company that executes trades for Robin Hood) reloaded their shorts before they told Robinhood to stop allowing users to buy GME. If you think Kan is a conspiracy theorist making baseless accusations, we see the world very differently. Which is fine. Diversity of thought is always welcomed in my opinion. But I…

So I am going to play a TRUMP card here on billionaires pushing conspiracy theories.

Thank you, I will be here all day.

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

#277

Post by golemiprague »

czechdeveloper wrote: post #51
eterm wrote: post #7

Browing the top of reddit right now is really reminiscent of /r/The_Donald, particularly the shift from a bunch of 'ironic' jokers to conspiracy theories and shouty chest beating and calls for upvotes. I'd treat anything like this with a huge pinch of salt.

Is it conspiracy theory, when it's true?

Yes, something can be true but not proven. I for example believe that the elections were rigged and that Trump actually won. It could be true but I got not proof so it stays in the realm of theory.

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

#278

Post by MichaelBurge »

ivalm wrote: post #271
vinay427 wrote: post #261

Earlier quoted context omitted.

There's a huge difference between limiting margin trading for GME and closing positions without asking a user or offering an option to put up collateral. Many brokerages did the former, and at least Schwab/Fidelity/TDA all seem to be otherwise up and running so retail investors can still buy and sell GME.

Closing without recourse during margin call if you are way below maintenance is normal operation. This is the problem with GME, it is extremely volatile and brokerages don't want to be left holding the bag when the bubble bursts and everyone who bought it on margin goes bust.

You can't buy GME on margin at most brokerages, for several weeks at least.

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

#279

Post by r00tanon »

There is a regulatory framework, enforced by the SEC, that prevents firms from collaborating on trades in attempts to manipulate stock prices.

When an army of retail investors openly collaborate on messaging platforms to manipulate a stock's price, essentially a crowd-sourced "pump and dump," it falls under SEC enforcement. A retail investor can still be prosecuted for violating SEC regulations, such as using insider information, when trading.

This is yet another example of unintended consequences with regards to social media and its power to concentrate misinformation and incite mob behavior. I'm sure the vast majority of the people on Robinhood trading up Gamestop (GME) have no idea of the potential legal harm they may be exposed to, not to mention financial harm, even though the T&C's they signed on opening their accounts (especially margin accounts) almost certainly spelled out those risks.

Robinhood business model is the canary in the coal mine.

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

#280

Post by RhodoGSA »

r00tanon wrote: post #279

There is a regulatory framework, enforced by the SEC, that prevents firms from collaborating on trades in attempts to manipulate stock prices. When an army of retail investors openly collaborate on messaging platforms to manipulate a stock's price, essentially a crowd-sourced "pump and dump," it falls under SEC enforcement. A retail investor can still be prosecuted for violating SEC regulations, such as using insider…

It's interesting because none of what you say is true. Hedge funds definitely collude and not behind closed doors, but also out in the open. Hedge funds announce their picks and go from hedge fund to hedge fund explaining the decisions they made and why they made the stock pick they did. Thousands of analysts in the stock market influence the stock price based on what they see as future investments to be made and are very vocal about it. Wall street bets is no different, reddit just seems to have beat them at their own game.
Post reply on HN