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Transfer Stocks Out of Your Robinhood Account

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Re: Transfer Stocks Out of Your Robinhood Account

#201

Post by zodiac »

fny wrote: post #112
B4CKlash wrote: post #99

Earlier quoted context omitted.

https://finance.yahoo.com/video/heres-why-robinhood-restrict... It sounds like FINCEN requirements require a 2-day settlement period. This period allows fractional trading to work (they pool orders and execute on day 2). Those same restrictions also appear to restrict a broker/dealer from using customer funds to cover this float. From there it's pretty easy to interpret the end results - risk rises, fees rise, and su…

Ask yourself: why didn't they just freeze trading these securities instead of forcing liquidations across retail brokerages and putting everyone in sell only mode? They're covering for the market makers and shorts who are on the hook for all the options bought and shares shorted. Institutions could enough to ameliorate their pain while the only option given to everyone else was sell. They should have instead stopped…

What if they disabled trading, the stock slowly lost value, and people who were long the stock couldn't exit their position?

Someone's gonna complain and ask "why didn't they just disallow buying but allow selling".

Re: Transfer Stocks Out of Your Robinhood Account

#202

Post by totalZero »

SpicyLemonZest wrote: post #166
flatline wrote: post #157

Earlier quoted context omitted.

Fidelity - and probably other brokerages - let you buy with unsettled cash, you just can’t sell and buy something else until the cash settles or it’s a good faith violation. You can also enable margin and do it that way. That’s an interesting approach RH takes. Is margin just available and automatic when you sign up? I saw a lot of people on wsb apparently buying on margin and having no idea what it was.

It is. The default Robinhood account is a margin account branded as Robinhood Instant; if you don't want to trade on margin, you have to downgrade (their term, not mine) to Robinhood Cash.

Robinhood Instant is not the same thing as a margin account. You're thinking of Robinhood Gold. FINRA rules say you can't open a margin account with less than $2k.

Margin investing is offered to eligible customers through Robinhood Gold, a suite of premium investing products including Nasdaq Level 2 market data and Morningstar Research Reports, for only $5 a month. The first $1,000 of margin is included in the $5 monthly fee. After that, customers pay a flat 2.5% yearly interest rate on any amount used above $1,000. Our pricing is straightforward and the same for every eligible customer, regardless of their account size.

https://blog.robinhood.com/news/2020/12/21/robinhood-lowers-...

Re: Transfer Stocks Out of Your Robinhood Account

#203

Post by thatguy0900 »

adrr wrote: post #135
nightski wrote: post #117

Earlier quoted context omitted.

I've been watching the market for years. Pump & dumps happen. They are usually over in a few hours max. Sometimes much quicker. This has been going on for days (the majority of the week) and shows no signs of stopping. In fact tomorrow could be the most volatile day yet. I'm not sure what is making you think all of the RH users were suckers, many of them have made quite a bit off of this. I don't personally use RH cu…

Stock market is a 0 sum game. Someone is going to pay in the end. It’s not the hedge fund, they already covered to the tune of $2 billion and someone has pocketed that money and it’s not retail investors.

I think the reality with the stock market seems to be that eventually the tax payer is left with the bags whether they owned any stocks themselves or not.

Re: Transfer Stocks Out of Your Robinhood Account

#204

Post by brewdad »

testnew2 wrote: post #159
adrr wrote: post #135

Earlier quoted context omitted.

Stock market is a 0 sum game. Someone is going to pay in the end. It’s not the hedge fund, they already covered to the tune of $2 billion and someone has pocketed that money and it’s not retail investors.

Its not 0 sum

It's zero sum the way a poker table in Vegas is zero sum. Every dollar won is a dollar lost by someone else. Meanwhile, the casino takes their rake.

Re: Transfer Stocks Out of Your Robinhood Account

#205

Post by themihai »

- They automatically liquidate your options positions

- They don't let any retailer buy stocks(i'm not even talking about options/leverage).

- They only let retailers sell only (to hedge funds).

- Then they come up with the " clearing houses" explanations...sure..but the price moved in the "right" direction right? Probably the hedge funds shorted even more as the bet was sure: block them from buying and the stock surely won't go up!

- Good news: the situation in monitored and "limited" trading will be allowed tomorrow...probably enough to make people dump the stock and let the hedge fund managers cover their naked shorts.

Let's hope the retailers will not get scared off, hold their ground and push the hedge funds into gamma squeeze!

Re: Transfer Stocks Out of Your Robinhood Account

#206

Post by ogre_codes »

grecy wrote: post #189
testnew2 wrote: post #164

Earlier quoted context omitted.

Who is going to buy the shares from them?

The people who are currently short have to buy, they have no choice.

Shorts are finite and a short squeeze can only last so long.

The way to profit is to sell when the shorts are squeezing the profits out.

Re: Transfer Stocks Out of Your Robinhood Account

#207

Post by [deleted] »

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…

[deleted]

Re: Transfer Stocks Out of Your Robinhood Account

#208

Post by ogre_codes »

PragmaticPulp wrote: post #170
grecy wrote: post #149

Earlier quoted context omitted.

What happens if they ALL hold until it's at an astronomical price like $10,000 ?

None of them have any gains until they press the sell button. The early buyers will probably sell a little bit to lock in profits. This drives the price down. They’ll then go on to social media and pump GameStop everywhere with memes and stories about taking down Wall Street. This brings in new money to pump the price back up. This is what they’re already doing: Pumping the stock to bring in new money, which they col…

> New entrants might see their value drop 50% as old entrants cash out.

New entrants are the bag-holders. The ones left holding the bag after everyone has pulled the money out.

Actually the bag holders are likely anyone foolish enough to try and transfer GME to another brokerage and ends up watching the share price plunge while they wait for them to show up in their new account.

Re: Transfer Stocks Out of Your Robinhood Account

#209

Post by psychlops »

harry8 wrote: post #190

https://mobile.twitter.com/SawyerHackett/status/135488686165... Edit: better link Is that fabricated, or did Robinhood really sell someone down against their will?

I saw this earlier. My guess is that it was a margin call.

edit: and with the new link you sent, it says the customer probably didn't have collateral. They will absolutely sell on a margin call.

Re: Transfer Stocks Out of Your Robinhood Account

#210

Post by WanderPanda »

adrr wrote: post #135
nightski wrote: post #117

Earlier quoted context omitted.

I've been watching the market for years. Pump & dumps happen. They are usually over in a few hours max. Sometimes much quicker. This has been going on for days (the majority of the week) and shows no signs of stopping. In fact tomorrow could be the most volatile day yet. I'm not sure what is making you think all of the RH users were suckers, many of them have made quite a bit off of this. I don't personally use RH cu…

Stock market is a 0 sum game. Someone is going to pay in the end. It’s not the hedge fund, they already covered to the tune of $2 billion and someone has pocketed that money and it’s not retail investors.

This zero sum claim is intellectually on a level with the flat earth claim, how on this (flat) earth do people still fall for it?!
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