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Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

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Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#531

Post by ianai »

josho wrote: post #457
vergessenmir wrote: post #365

Earlier quoted context omitted.

This is so true. It's all connected. It's probable that Reddit, Discord, RobinHood have all received calls to disrupt retail traders from political players or financial backers. There's no evidence of this, the truth is we'll never know, but how its most obvious reason. If only RobinHood would live up to its namesake. It is alarming that "soft" circuit breakers are being used to target retail traders on exchanges. I…

I look forward to the investigations on market manipulation that RH, Schwann, and TD did by not allowing their customers to trade on that stock. Or is it normal for brokers to independently halt trades on stocks they deem too risky?

Pretty sure what the WSB traders were doing could qualify for market manipulation and various securities frauds in broad daylight.

I honestly hope not, and that RHb etc are in the wrong. But it’s sure to be informative anyway.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#532

Post by xapata »

josho wrote: post #457
vergessenmir wrote: post #365

Earlier quoted context omitted.

This is so true. It's all connected. It's probable that Reddit, Discord, RobinHood have all received calls to disrupt retail traders from political players or financial backers. There's no evidence of this, the truth is we'll never know, but how its most obvious reason. If only RobinHood would live up to its namesake. It is alarming that "soft" circuit breakers are being used to target retail traders on exchanges. I…

I look forward to the investigations on market manipulation that RH, Schwann, and TD did by not allowing their customers to trade on that stock. Or is it normal for brokers to independently halt trades on stocks they deem too risky?

Usually it's the exchange that halts or throttles trading.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#533

Post by fennecfoxen »

josho wrote: post #457
vergessenmir wrote: post #365

Earlier quoted context omitted.

This is so true. It's all connected. It's probable that Reddit, Discord, RobinHood have all received calls to disrupt retail traders from political players or financial backers. There's no evidence of this, the truth is we'll never know, but how its most obvious reason. If only RobinHood would live up to its namesake. It is alarming that "soft" circuit breakers are being used to target retail traders on exchanges. I…

I look forward to the investigations on market manipulation that RH, Schwann, and TD did by not allowing their customers to trade on that stock. Or is it normal for brokers to independently halt trades on stocks they deem too risky?

> Or is it normal for brokers to independently halt trades on stocks they deem too risky?

Yes. It is exactly normal.

One. Brokers are required to act in the best interests of their clients. What is that? Well...

"A broker who becomes a fiduciary of his client must act with utmost good faith, reasonable care, and loyalty concerning the customer’s account, and owes a duty to keep informed regarding changes in the market which affect his customer’s interests, to act responsibly to protect those interests, to keep the customer informed as to each completed transaction, and to explain forthrightly the practical impact and potential risks of the course of dealing in which the broker is engaged."

— Rupert v. Clayton

Two. Robinhood is already under scrutiny already for trying to gamify trading, on the premise that it encourages people to treat things like a casino and lets them get hurt in the name of their own profit. They are on thin ice as it stands.

Three. This whole thing is going down like the Pequod, complete with the impassioned revenge monologue. "To the last I grapple with thee! From hell's heart I stab at thee! For hate's sake I spit my final breath at thee!"

If Robinhood didn't do something, they would soon learn what the true wrath of the regulators really looks like. Much, much better to drop Gamestop like a hot potato.

Some recent examples of similar actions: https://www.reuters.com/article/us-tvix-brokerages/schwab-co...

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#536

Post by neals »

cambalache wrote: post #390
notacoward wrote: post #355

Earlier quoted context omitted.

Please don't use rape as a metaphor.

Yeah, also add to the list: Kill, maim, torture, force, destroy ...

Yes, I agree. Also add to the list: laugh at, look at, downvote, whisper, cough and point to. All of this triggers my poor snowflake millenial mind.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#537

Post by cbozeman »

josho wrote: post #457
vergessenmir wrote: post #365

Earlier quoted context omitted.

This is so true. It's all connected. It's probable that Reddit, Discord, RobinHood have all received calls to disrupt retail traders from political players or financial backers. There's no evidence of this, the truth is we'll never know, but how its most obvious reason. If only RobinHood would live up to its namesake. It is alarming that "soft" circuit breakers are being used to target retail traders on exchanges. I…

I look forward to the investigations on market manipulation that RH, Schwann, and TD did by not allowing their customers to trade on that stock. Or is it normal for brokers to independently halt trades on stocks they deem too risky?

> Or is it normal for brokers to independently halt trades on stocks they deem too risky?

Absolutely not, and I almost typed "LOL" in front of that because your question - while genuine and sincere - is so ridiculous in the context of the stock market that it actually made me laugh out loud.

Brokers are more than happy to allow unsophisticated investors to buy or sell any stock. They won't let you use sophisticated products like options, etc., but simple buying and selling? Absolutely. What's happening here is simple. The wrong people are getting rich. The wrong people are losing money. That cannot be allowed.

There is something called the "pattern day trading rule" wherein someone buys and sells the same security several times and their ability to buy and sell gets restricted, but that's not what's happening here. People wanting to buy $GME are wanting to buy and hold. Not sell.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#538

Post by techsupporter »

joering2 wrote: post #438
zarkov99 wrote: post #57

Sure. Robinhood got a call from someone very powerful in their circle, politely asking them to stop the amateur plebes from interfering with their professional market manipulation. We are taking about people commanding titanic amounts of capital and (indirect) regulatory power. Robinhood then had the choice, do we make enemies out of these people or do we just screw, er, I mean protect, our customers? Unburdened by a…

Now they made enemies of most of their clients. I bet not more than few weeks before you will see advertising from big shot lawyers on national TV welcoming you into class action lawsuits. Frankly, I am terribly disgusted by this news from Robinhood and I hope they will be sued into eternity... and then hopefully DOJ step in an see what they did was illegal. If you have Robinhood account, write you state AG. Show you…

> you will see advertising from big shot lawyers on national TV welcoming you into class action lawsuits

Like all darling start-ups, Robinhood has a section of its terms of use whereby users give up their right to sue.

Because courts are only for the rich and those with the power to negotiate. The rest of us clicking on take-it-or-leave-it contracts can pound sand.

Section 38: https://cdn.robinhood.com/assets/robinhood/legal/Robinhood%2...

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#539

Post by shakezula »

ucha wrote: post #414

Robinhood sells their order flow to Citadel. Citadel is financing Melvin Capital's GME short. The financing terms are private but whether they just lent them funds to cover the margin calls or actually hold their short positions until the storm passes for a fee, it is absolutely in their interest to prevent GME from continuing to skyrocket. Drawing a collusion between Citadel and RH isn't that far-fetched but I obvio…

Because it’s not a free market. It’s a controlled market where market makers have all the power and they plainly flex it. I’m pretty disgusted with this as a whole. As others have pointed out in this thread, these funds have no problem margin calling the little guy but when they get in danger of losing their ass they can just bail out and hit the “off” button on the whole stock? Complete bullshit honestly.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#540

Post by treis »

lordnacho wrote: post #384
snowwrestler wrote: post #187

Earlier quoted context omitted.

The way to make money in a bubble like this is to sell right before the pop. At some point the word will go out that it’s over—“we won”—and everyone will rush to sell their GME and take profits. It’s not possible for all those people to succeed. Broker apps like Robinhood will be absolutely overwhelmed with sell orders, many of which will run into technical problems and/or no counter parties. A lot of people are goin…

> Broker apps like Robinhood will be absolutely overwhelmed with sell orders Shouldn't be possible. Most of the messages to the orderbook, by orders of magnitude, would be market makers doing add/cancel, which isn't something that comes from RH anyways. How often is one particular user going to send in an order? 10 times a day if they're particularly busy? Doesn't touch the sides. The internet facing gateways can be…

A system could be built to handle this. Robinhood's likely hasn't been considering the notable outages they've had.
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