Does Robinhood have stop-loss orders an if so did they execute when it was down?
An Update from Robinhood’s Founders
101–110 of 295 posts
Re: An Update from Robinhood’s Founders
#102Earlier quoted context omitted.
I think it's unlikely that Robinhood (or any brokerage) would compensate people for losses on hypothetical trades that could have been made during an outage. Such a policy would allow customers to pick their entry and exit points, and extract money from the brokerage at will. Even if the trades were well-defined at the time the outage occurred, there would still be an asymmetry between people demanding compensation o…
Are expiring in-the-money options a "hypothetical trade" ?
That's an interesting question. I suppose it's hypothetical in the sense that they now have to look at "what if" those options had been exercised; but unlike a spot trade that someone "would have" done, Robinhood might already have had obligations on its end of the original options trade.
Re: An Update from Robinhood’s Founders
#103"That in turn led to a “thundering herd” effect—triggering a failure of our DNS system."
I'm just a spectator but I can not imagine that this was somehow caused by a DNS failure.
Re: An Update from Robinhood’s Founders
#104"That in turn led to a “thundering herd” effect—triggering a failure of our DNS system." I'm just a spectator but I can not imagine that this was somehow caused by a DNS failure.
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Re: An Update from Robinhood’s Founders
#105Earlier quoted context omitted.
Quick example: They bought puts on Friday and couldn't unload them for a full day + following morning. Monday morning puts were down - it was obvious the market was recovering in a big way. Instead of cutting losses at ~20% in the morning they lost ~99% of their position. Some lost 100% since the options expired EOD.
> it was obvious the market was recovering in a big way Was it? Markets started up today but ended way lower.
He is talking about Monday not today, Tuesday. RH didn’t work on Monday either.
Re: An Update from Robinhood’s Founders
#106On the profession side of this, if you're an engineer at RH in the thick of this - many have been there. It seems dire now, but in a few years the fog, panic, and haze of no sleep will become a story you tell your peers at happy hour.
Many will cast stones - but they have been there too. If they haven't, well maybe their day will also come. You may feel bad at the moment - but the best way professionally forward is "We try our best tomorrow"
Re: An Update from Robinhood’s Founders
#107I know quite a few people that were personally affected by this and lost money due to the two outages and they are all pulling their money from Robinhood. The fact that they can't offer any compensation might be a big problem for them, since they already have zero trading fees, which is what most brokerages offer as compensation. Personally it doesn't pass the smell test for me. The load was much higher the previous…
This isn't something new, downtime is the norm for Robinhood. Anyone trusting them with more than play money is foolish.
Re: An Update from Robinhood’s Founders
#108Earlier quoted context omitted.
It’s another example of why DevOps has become a buzzword and most teams just pay lip service to it.
Everything has outages. Is this the new narrative now that we've moved on from the leap year thing? That RobinHood is just a bunch of shitty engineers? There are no public details about the root cause. I think RH is bad for people in general, but this pile-on is outrageous.
Robinhood crashing isn't an isolated unfortunate "well it happens to everyone" moment.
RH has constantly had issues at least since I started using it over a year ago. I didn't notice it really at first, but I also didn't know much about anything trading related back then. It didn't take long though for me to have my first "incident" where my market orders were seemingly vanishing into the abyss as the underlying moved. I'm not talking seconds, I'm talking minutes. For a market order on high liquidity options. Never mind trying to get filled at anything besides the ask (buying) or bid (selling).
RH has had serious underlying issues for a long time now. This incident didn't happen in vacuum. The writing has been in huge block letters on the wall for a long time.
Re: An Update from Robinhood’s Founders
#109Just use Square’s Cash App! Free stock trades AND you can buy fractional shares AND a bunch of other stuff like P2P payments and bitcoin. I work there and so can say with some authority that we can handle more volume without going down than RH can.
Re: An Update from Robinhood’s Founders
#110"That in turn led to a “thundering herd” effect—triggering a failure of our DNS system." I'm just a spectator but I can not imagine that this was somehow caused by a DNS failure.
I’m not sure I can even count the number of outages I’ve been involved in that had DNS issues as at least part of the cause.