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Robinhood is automatically initiating GME sell orders on users' behalf

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Re: Robinhood is automatically initiating GME sell orders on users' behalf

#241

Post by xuki »

ed25519FUUU wrote: post #219
runako wrote: post #132

Obviously, margin calls are legitimate. But Robin Hood obviously played an important role in the price direction that led to the margin calls. I honestly don't know how anyone could trust RH as a neutral party after this.

What brokerages hit you with a margin call when you're UP on a stock? Margin calls are for when you fall BELOW a certain liquidity event. His shares are for $118.93. He's up over 60%.

They can up the margin requirement, if he/she bought the shares with margin before it theoretically could trigger a margin call.

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#242

Post by greenshackle2 »

ptd wrote: post #237
paxys wrote: post #232

Earlier quoted context omitted.

One of the top posts on WSB this morning was a supposed Robinhood engineer who overheard a call between their CEO and the White House instructing them to stop trading $GME. The /r/The_Donald comparisons seem apt at this point.

You don't think any of the high finance billionaires who were losing billions of dollars reached out to the people in the government whose campaigns they funded for support? Calling this a conspiracy theory is...inaccurate in my opinion.

There is a difference between believing in corruption and believing a specific conspiracy based on anonymous hearsay.

So yes. It's literally a conspiracy theory.

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#243

Post by anomaloustho »

josho wrote: post #190
freeflight wrote: post #162

Earlier quoted context omitted.

> I'm going to say practically no one reads these agreements, and even fewer understand them. This might be true for the myriad of free online services and applications most people use on the daily. But with anything I plan to spend or invest my money in/give my real personal information to I will most certainly take care to properly read and understand what I'm agreeing to there. In that context, comparing your mort…

> I will most certainly take care to properly read and understand And when you don't understand the dense legalese how did you get clarification? Did you pay a few hundred dollars to have a lawyer review the contract and explain it to you? Perhaps call the company up to have a minimum wage call center employee explain it to you? Or just come up with an interpretation of the text that seems to make sense and conclude…

> when you don’t understand the dense legalese

This confuses me a bit because I have personally never encountered anything in a legal document that I didn’t understand. I am not in support of reading all of the TOS, as that seems like an impossible feat, but when I have read any TOS or contract, it seemed understandable.

The hardest thing for me is comma separated if statements written in plain English. But that’s mainly because it can be difficult to hold the conditionals in short term memory - but it has always been manageable.

What’s an example of dense or unintelligible legalese?

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#244

Post by ptd »

paxys wrote: post #232
eterm wrote: post #7

Browing the top of reddit right now is really reminiscent of /r/The_Donald, particularly the shift from a bunch of 'ironic' jokers to conspiracy theories and shouty chest beating and calls for upvotes. I'd treat anything like this with a huge pinch of salt.

One of the top posts on WSB this morning was a supposed Robinhood engineer who overheard a call between their CEO and the White House instructing them to stop trading $GME. The /r/The_Donald comparisons seem apt at this point.

Justin Kan, founder of Twitch and Atrium(net worth over 9 figures) tweeted that he got a tip that Citadel(the company that executes trades for Robin Hood) reloaded their shorts before they told Robinhood to stop allowing users to buy GME.

If you think Kan is a conspiracy theorist making baseless accusations, we see the world very differently. Which is fine. Diversity of thought is always welcomed in my opinion. But I am curious how you can have that opinion. It seems so clear to me, so I'm a bit confused as to how someone can hold the oppsite view.

https://twitter.com/justinkan/status/1354853920762253315?s=2...

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#245

Post by dalbasal »

MrPatan wrote: post #177
AnHonestComment wrote: post #111

Earlier quoted context omitted.

A margin call on a stock you halted trading in smells like fraud. It’s like the bank banning selling your home then repossessing it when the value falls. Crooked entirely.

Not exactly. It would be as if the bank that mortgaged your house then prevented people from buying it, then turned around to you and said "See? Nobody wants it! You need to lower the price. Oh! What's this? The price has gone down, I need to reposses it. Thanks, come again!

Ding ding ding.

These "here's why it's OK" legitimations are sounding just as cynical as the high profile insiders' rage against WSB that we have been hearing.

This is fast becoming a symbol of brazenly rigging of financial systems to ensure the house wins.

Hypocritical appeals to responsibility are half of what's causing all this rage. Sure, a responsible broker might reserve a right to liquidate your position in order to limit their risk. This isn't a responsible broker. They might also liquidate your position to limit their losses at your expense... or because the cabal said to.

We are not starting from the assumption that they (RH, Citadel, NASDAQ,etc... even the SEC) are acting responsibly, or in the interest of "mom & pop." They are playing heads I win, tails your lose... again.

The hedge funds got caught holding $10m puts with $1bn (so far) long tail risk. RH are in some sort of similar position. They make high, steady returns from such positions. Typical insider deal. When that long tail risk materializes, all bets are off... and this is not even a figure of speech!

The asymmetry is dumbfounding. Responsible actors! Market Fundamentals! The hypocrisy of it.

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#246

Post by refurb »

tibbon wrote: post #112
mikestew wrote: post #98

Yeah, brokerages will do that if the stock takes a big drop like it did today. Oh, did you not read that part of your margin agreement? According to thread, some are just now getting to that part. Those same folks shouldn't have been trading GME on margin. If it's any consolation, I've had Fidelity, IB, et. al., do the exact same thing when a trade turned sour. Difference is, I didn't run to Reddit to display my igno…

I honestly didn't read the agreements on Robinhood. Before you call me stupid or irresponsible, I'm going to say practically no one reads these agreements, and even fewer understand them. The NYT a few days ago had an opinion piece on how no one reads the TOS for things like this. A very choice line: > A 2012 Carnegie Mellon study found that the average American would have to devote 76 work days just to read over tec…

Your position of “TOS are too long and complicated therefore I should be held to them” is completely ridiculous.

There is eventually a point where if you want to make independent financial decisions as adult, you need to be responsible for understanding what you’re getting into.

Do t read the TOS for your Facebook account? Low risk. Don’t read the agreement for your RH margin account? That’s just dumb.

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#247

Post by refurb »

tibbon wrote: post #211
xzel wrote: post #124

Earlier quoted context omitted.

TOS on websites aren't the same the agreement to a margin account. Not reading that would be like not reading your mortgage agreement or your auto loan agreement. I agree they're long and confusing but financial agreements are super important to read and if you can't understand it hire a younger/cheaper lawyer for an hour. Every contract I've signed for employment I've hired someone to confirm the law in that state a…

> Every contract I've signed for employment I've hired someone to confirm the law in that state and it really makes a difference knowing what is in there. That's really cool to be able to do. For the average American, that's pretty much impossible to afford.

It’s not impossible to afford. You can a lawyer to review a employment contract for a few hundred dollars. Many, many Americans can afford that.

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#248

Post by SamBam »

Apocryphon wrote: post #209
SamBam wrote: post #193

Earlier quoted context omitted.

Do you believe that the Tesla buyers are trying to manipulate the market, and have no expectation that the company itself is valuable?

Do you believe that GameStop buyers think that the company is as doomed as the short-sellers did? The origin for this whole thing was a DD post that argued that it was a value stock that was over-shorted. And there were institutional investors and analysts like Michael Burry who also saw this happening.

I don't know if they thought it was doomed, but I highly doubt a single one of the buyers think it's worth $500+ a share. That's not why they're buying it.

Unless there's some other scheme that I'm unaware of, I think Tesla buyers do think it's worth that much, though they may be wrong about that.

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#249

Post by paxys »

ptd wrote: post #244
paxys wrote: post #232

Earlier quoted context omitted.

One of the top posts on WSB this morning was a supposed Robinhood engineer who overheard a call between their CEO and the White House instructing them to stop trading $GME. The /r/The_Donald comparisons seem apt at this point.

Justin Kan, founder of Twitch and Atrium(net worth over 9 figures) tweeted that he got a tip that Citadel(the company that executes trades for Robin Hood) reloaded their shorts before they told Robinhood to stop allowing users to buy GME. If you think Kan is a conspiracy theorist making baseless accusations, we see the world very differently. Which is fine. Diversity of thought is always welcomed in my opinion. But I…

If there's no evidence backing it then it is a conspiracy theory, whether coming from an anonymous Reddit post or from a billionaire's Tweet. I don't know Justin Kan's background but he could very well have his own angle behind all this, or just faulty information. And even if he is correct, he is saying something very different from the post I mentioned.

Re: Robinhood is automatically initiating GME sell orders on users' behalf

#250

Post by rkagerer »

tibbon wrote: post #112
mikestew wrote: post #98

Yeah, brokerages will do that if the stock takes a big drop like it did today. Oh, did you not read that part of your margin agreement? According to thread, some are just now getting to that part. Those same folks shouldn't have been trading GME on margin. If it's any consolation, I've had Fidelity, IB, et. al., do the exact same thing when a trade turned sour. Difference is, I didn't run to Reddit to display my igno…

I honestly didn't read the agreements on Robinhood. Before you call me stupid or irresponsible, I'm going to say practically no one reads these agreements, and even fewer understand them. The NYT a few days ago had an opinion piece on how no one reads the TOS for things like this. A very choice line: > A 2012 Carnegie Mellon study found that the average American would have to devote 76 work days just to read over tec…

It's not worth it

Well, there you go. You determined it wasn't worth it, so don't be surprised if there's an outcome you don't like.

I read terms quite often and have flatly refused to use services because of them, or in some cases told them in writing I don't accept a problematic clause (for whatever that's worth). It's a real pain and I typically have very little bargaining power.

Maybe if the world wasn't full of people who simply don't care we could effect some change here.

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