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Transfer Stocks Out of Your Robinhood Account

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Re: Transfer Stocks Out of Your Robinhood Account

#231

Post by roywiggins »

newacct583 wrote: post #88
yakz wrote: post #83

Earlier quoted context omitted.

Hopefully some (many) people will take it to heart that Robinhood users are suckers. This wasn't "just" privacy violations or psychological manipulation with ads, this was Robinhood deciding what to do with YOUR money to cover their ass. Whether they lent it to you or not doesn't matter, because if the bad trade were going the other way, then you, the sucker, would absolutely be on the hook. Whether it's fraud or fla…

> Hopefully some (many) people will take it to heart that Robinhood users are suckers. While this is all true (and realistically Robinhood has killed their brand and probably won't survive), those same users were also suckers for falling for this ridiculous GME pump. What Robinhood did was absolutely in self-interest, but it was trying to cover up a mess that fundamentally wasn't of its own devising. They were either…

Didn't Robinhood's competitors do the same thing, more or less? Why does this kill Robinhood and not E-Trade?

Re: Transfer Stocks Out of Your Robinhood Account

#232

Post by SpicyLemonZest »

totalZero wrote: post #202
SpicyLemonZest wrote: post #166

Earlier quoted context omitted.

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 mon…

I don't use Robinhood myself, so I could be mistaken or confused about something, but their documentation specifically describes Instant as a margin account. (https://robinhood.com/us/en/support/articles/robinhood-accou...)

Re: Transfer Stocks Out of Your Robinhood Account

#233

Post by perl4ever »

ars wrote: post #93
kasey_junk wrote: post #54

Earlier quoted context omitted.

Should the IB execs & TD Ameritrade execs be charged too? What about APEX clearing which enforced this rule with all of their customers?

Did TD halt trading in it? I thought they only raised margin requirements, which is reasonable. You can still buy if you have the cash.

They did disallow at least some buys. Including buy to close.

Re: Transfer Stocks Out of Your Robinhood Account

#234

Post by dang »

This is a generic follow-up post rather than one that adds significant new information (SNI). Those aren't great submissions when there's a MOT (Major Ongoing Topic), because it will just produce the same generic discussion that's happening over and over: https://news.ycombinator.com/item?id=25933543. Better to wait for SNI.

https://hn.algolia.com/?dateRange=all&page=0&prefix=true&sor...

https://hn.algolia.com/?dateRange=all&page=0&prefix=false&so...

This approach goes back to the Great Snowden Snow-In of 2013, and has served HN well since then.

https://hn.algolia.com/?dateRange=all&page=0&prefix=true&sor...

Re: Transfer Stocks Out of Your Robinhood Account

#235

Post by roywiggins »

JMTQp8lwXL wrote: post #150
flyGuyOnTheSly wrote: post #123

I really don't know what all the fuss is about. Robinhood decided to halt trading on a number of stocks due to uncommon volatility, just for a day, so they can assess the matter. [0] And as is common practice in the trading world... when a market is closed, you are still allowed to close your position. Which means that you are allowed to sell, and not buy. (If robinhood allowed for true shorting then people could sti…

Who is supposed to buy the stock if nobody else in the app is allowed to enter positions? It's strictly forcing the transfer of the stock from a retail investor to a market maker. It's the antithesis of a free market where any market participant can act as buyer or seller. I don't think it implies there's a huge conspiracy, but it does implicate certain bad actors in the financial system. No, not everyone is bad. But…

If the only other people left to sell to are Robinhood investors, you're in trouble anyway.

Re: Transfer Stocks Out of Your Robinhood Account

#236

Post by roywiggins »

fountainofage wrote: post #225
calmworm wrote: post #90

Earlier quoted context omitted.

Your speculation and saying “a lot of misinformation out there” doesn’t help. Allowing traders to only sell, and blocking buying is wrong. Who is allowed to buy at that point? Very few retail traders, but every major player who has an upside down stake still can. The price was then tamped down during the lock out so hedges and old money are able to minimize their loses. Anyone pretending this didn’t happen is delusio…

They will likely lose a lot of their users. The users were never the customers - not even the gold ones.

Which broker do they go to instead? The big competitors at least temporarily halted GME buying today also.

Re: Transfer Stocks Out of Your Robinhood Account

#237

Post by cameldrv »

flatline wrote: post #157
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…

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.

Obviously Fidelity is taking on some risk by letting you do this if the transaction does not clear. However, normally, customers depositing are going to buy a variety of normal, not too volatile assets. If your deposit doesn't clear, they just sell whatever you bought and get their money back.

If a large percentage of their customers were new, young, fairly low income (and thus more likely to have their transactions bounce), and they all wanted to buy long positions in a stock that very likely could drop 90% in the next two days, the risk is far higher.

Re: Transfer Stocks Out of Your Robinhood Account

#238

Post by adrr »

cambalache wrote: post #172
adrr wrote: post #82

Earlier quoted context omitted.

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.

SEC violations are civil violations and you don’t go to jail. I mentioned that in my original post.

Re: Transfer Stocks Out of Your Robinhood Account

#239

Post by harry8 »

psychlops wrote: post #209
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.

It's not an option. It's common stock and a long position.

A margin call you can settle with cash. There's nothing here that says "you didn't deposit cash so we're selling your position(s) of value to make margin"

I mean it's possible, but I'm in no way going to default to that explanation absent evidence.

Edit: it explicitly cites the "risk of brokering your position" in GME shares. If this isn't faked it's an astoundingly, jaw droppingly, nakedly and utterly amazing thing to do.

Re: Transfer Stocks Out of Your Robinhood Account

#240

Post by si1entstill »

brewdad wrote: post #204
testnew2 wrote: post #159

Earlier quoted context omitted.

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.

Eh - the poker table doesn't have a concept of dividends. (A free drink or two not withstanding)
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