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Transfer Stocks Out of Your Robinhood Account

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Re: Transfer Stocks Out of Your Robinhood Account

#261

Post by cacarr »

PragmaticPulp wrote: post #155
llboston wrote: post #138

Earlier quoted context omitted.

> 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. Then they can reduce the purchasing power for certain stocks to just the money already transferred.

There are additional capital requirements for brokering stocks, as mandated by regulations including Dodd-Frank, that made it extremely expensive to handle GME trades during the frenzy. This thread explains the math in detail: https://twitter.com/kralctrebor/status/1354952686165225478?s... I know the popular narrative is that this was some sort of conspiracy, but the truth is likely far more banal. Unprecedented vola…

They can't have a democratizing investment brand, and then intervene in a way that wildly (and predictably) favors the fat-cats.

Whatever changes they make, those changes need to enable them to not intervene in that manner ever again.

Re: Transfer Stocks Out of Your Robinhood Account

#264

Post by valuearb »

adrr wrote: post #106
colinmhayes wrote: post #67

Earlier quoted context omitted.

Except it's nothing like that because it directly caused their users to lose hundreds of thousands of dollars of unrealized gains.

RH prevented users from closing positions and realizing gains?

Read up on what T+2 settlement period is. When you buy GME Robinhood is on hook for two days before it closes and has to post collateral with the clearinghouse (DTC) during that time. As BME volatility exploded the collateral demanded of Robinhood skyrocketed.

Re: Transfer Stocks Out of Your Robinhood Account

#265

Post by xenihn »

alex-wallish wrote: post #185
xenihn wrote: post #129

I'm pulling everything out tomorrow because I'm seriously scared of them becoming insolvent and collapsing at this point.

Even if that were to happen, aren't users insured up to $500k?

I don't know if that's stock values or just cash. Even if it is, it would be a huge hassle...

Re: Transfer Stocks Out of Your Robinhood Account

#266

Post by tekknik »

PragmaticPulp wrote: post #174
TuringNYC wrote: post #156

Earlier quoted context omitted.

>> 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 e…

> 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.

They do have the ability to change the margin requirements for a particular stock, as well as disable “instant deposits”. They don’t let you withdrawal money until it’s cleared so adding the ability to hold the funds in the account until they clear wouldn’t be hard if it’s not already there.

Re: Transfer Stocks Out of Your Robinhood Account

#268

Post by kasey_junk »

rubyist5eva wrote: post #257
kasey_junk wrote: post #110

Earlier quoted context omitted.

I’m trying to figure out what risk mitigation techniques and what trading pricing regimes are going to land people in prison after the fact in the Reddit future.

short selling more than 100% of the stock is an easy one

No one person is short selling over 100% of the stock. Its a combination of many different actors each one of them shorting a small %. What % of a company can you short without going to jail do you predict?

Re: Transfer Stocks Out of Your Robinhood Account

#269

Post by ericpauley »

fny wrote: post #124
ericpauley wrote: post #115

Earlier quoted context omitted.

So you're arguing that, instead of just disabling buying, they should have disabled buying and selling? That would expose them to far more substantial and direct liability than disabling new positions.

These securities should have been frozen so people could capitalize enough to supply the liquidity that was demanded instead of just letting institutions buy whatever they needed to cover their positions while forcing liquidations across the board.

Perhaps, but that’s not Robinhood’s call. Under the (likely) assumption that RH had liquidity issues, it’s hard to see what other choice they had.

Re: Transfer Stocks Out of Your Robinhood Account

#270

Post by colechristensen »

blhack wrote: post #162
colechristensen wrote: post #38

Earlier quoted context omitted.

A whole lot goes on behind the scenes with securities trading, your interface to it as a retail trader buying and selling is only the tip of the iceberg. Most of the people talking about various conspiracy theories about brokerages have clearly very little idea of how brokerages work on the back end (and not very many people do know this) or what regulatory duties brokerages have and hwo that might inform decisions t…

Could you give us a rough overview? If I click "sell" on a share of tesla right now on my robinhood account, what happens then?

https://blog.robinhood.com/news/2021/1/29/what-happened-this...

Straight from the horse’s mouth

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