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Robinhood cuts losses after transaction revenue drops

wsj.com

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Re: Robinhood cuts losses after transaction revenue drops

#111

Post by masterjack »

COGlory wrote: post #101
wcoenen wrote: post #74

Earlier quoted context omitted.

I don't think Robinhood had any choice there. Trades don't settle instantly. Robinhood needs to post collateral with the Depository Trust & Clearing Corporation while settlement is pending, and the required collateral goes up with volatility. During the "GameStop debacle" they had to raise billions of USD in additional capital for this purpose, so no wonder they had to hit the brakes.

They could have frozen trades in both directions.

Blocking selling is a good way to get sued, so brokerages are very hesitant to do it. If the price drops the trader can claim they wanted to sell and are owed the difference. Blocking buying doesn’t have this issue since you can’t sue for theoretical gains.

Re: Robinhood cuts losses after transaction revenue drops

#113

Post by patd »

irjustin wrote: post #82
throwup wrote: post #29

Earlier quoted context omitted.

I certainly think it tells us something about RH. You don't see Vanguard or Fidelity losing a third of their userbase in a year.

> You don't see Vanguard or Fidelity losing a third of their userbase in a year. I can't read the article, but you define "monthly active users" as a user exiting the platform i.e. pulling their money out?! Originally, I had assumed it was "users who don't open the app/website" but expectation difference caused me to look it up: > Robinhood defines a monthly active user as a "unique user who makes a debit card transa…

> or have a Funded Account to be included in MAU

If you have a balance of $1, wouldn’t you be counted as an active user ?

It sounds to me that an active user is someone with funds or that interacted with the app/website while logged in. I’m not sure the second category made much sense to begin with (unless you wanted to inflate the numbers during a bull run)

Re: Robinhood cuts losses after transaction revenue drops

#114

Post by vba616 »

drnonsense42 wrote: post #73
danuker wrote: post #69

Earlier quoted context omitted.

The floor denominated in dollars can still go to zero. The utility of Bitcoin is its global payment network.

But, the floor of profits for a company is not denominated in dollars. It is shit you put in your mouth and eat or a useful product like a refrigerator which you can put things which allow you to not die. Bitcoin, on the other hand, is some electricity, and arguably a waste of it.

>It is shit you put in your mouth and eat

/happy gilmore

Re: Robinhood cuts losses after transaction revenue drops

#115

Post by JeremyNT »

iepathos wrote: post #46
adoxyz wrote: post #2

Stock market has been in a slump all year, crypto down huge. Close to 100k layoffs in tech (according to layoffs.fyi). I think people got other things on their mind than trading stocks/crypto.

Ironically, it's probably best to buy stocks and crypto when they are in valleys like this rather than at peaks. The unemployment rate is still only 3.5% in the US, so anyone getting laid off is being hired back almost immediately with very little slack. The Fed would actually prefer to see higher unemployment around 6% to better manage inflation so they'll keep interest rates high until they see that happen.

> Ironically, it's probably best to buy stocks and crypto when they are in valleys like this rather than at peaks.

Is this actually a "valley" though? I'm not sure about that. It could be the worst of this recession is yet to come for both types of assets.

Buying at the bottom is a great idea, but the hard part is knowing where the bottom actually is.

Re: Robinhood cuts losses after transaction revenue drops

#116

Post by eloff »

schrodinger wrote: post #72
danuker wrote: post #69

Earlier quoted context omitted.

The floor denominated in dollars can still go to zero. The utility of Bitcoin is its global payment network.

The floor of dollars is the might of the US military. If you haven’t noticed it’s prettttty strong these days.

I keep hearing this repeated, but the link between military and the strength of the dollar is tenuous at best.

Re: Robinhood cuts losses after transaction revenue drops

#117

Post by collegeburner »

kylehotchkiss wrote: post #5

If Robinhood had to close shop, who's a good broker to transfer holdings over to?

interactive brokers 100%. best rates you can get on margin, high quality tech. be aware they will sometimes move margin requirements and give you limited time to cover if something starts looking sketchy, sometimes a bit more aggressive than other retail brokerages. but not a problem if you manage right.

Re: Robinhood cuts losses after transaction revenue drops

#118

Post by eloff »

WalterBright wrote: post #100
eloff wrote: post #66

Earlier quoted context omitted.

With stocks, you're purchasing future profits. That puts a floor under things. With crypto you're purchasing??? There's no floor. It has limited utility.

I've had stocks go all the way to zero.

And crypto go all the way to zero. I'm not sure what your point is. Companies can go bankrupt. So can coins. That's neither here nor there.

Re: Robinhood cuts losses after transaction revenue drops

#119

Post by collegeburner »

skymast wrote: post #25

Why would anyone trust a financial institution with their money when they have acted like Robinhood as acted? This is a fundamental question.

i think this has more to do with the market tanking. nobody wants to log on to a sea of red. robinhood didn't start doing anything new as of september to drive people off.
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