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Are expiring in-the-money options a "hypothetical trade" ?
Those are automatically exercised at expiration.
Otherwise it's on the broker to sell it at close to someone who can afford to exercise. And who knows if RH pulled that off or not.
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Those are automatically exercised at expiration.
If the holder can afford to exercise, and I can assure you that most RH users cannot afford to exercise a single contract(at least on most commonly traded stocks). Otherwise it's on the broker to sell it at close to someone who can afford to exercise. And who knows if RH pulled that off or not.
https://www.reddit.com/r/wallstreetbets/comments/fcqkmo/so_r...
There's also some threads where it looks like it did not go so well...
https://www.reddit.com/r/wallstreetbets/comments/fd2eko/upda...
Sad that there isn’t an actual apology anywhere to be found in the letter at all. And now with the fed rate cut the interest on cash is only 1.3%, with more cuts expected later in the year, which was the last big differentiator. I don’t see how they don’t see massive net withdrawals going forward.
> And now with the fed rate cut the interest on cash is only 1.3%, with more cuts expected later in the year, which was the last big differentiator. I don’t see how they don’t see massive net withdrawals going forward. This isn't really an issue because the fed rate cut impacts everyone. Other institutions will cut their interest rates as well. I know of a few banks (Canadian) that have already lowered their GIC rate…
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Options are completely free on Robinhood while they still have a per-contract fee at other brokerages. If you don't care about that then no, there's no reason to stick with Robinhood.
Additionally Robinhood self clears options (or for some other reason?) and does not charge the Options Clearing Corp fee of $0.055/contract or the Options Regulatory Fee of $0.0388/contract which all other brokers charge (incl. ones with $0 or flat rate commissions/fees like WeBull, Gatsby, Tradier). All you pay is the FINRA and SEC fees on sells of about a penny each for small trades. Actually, if anyone knows of an…
If it's chump change you're trading, sure, use RH.
If it's serious money, the $0.65/contract or whatever pays for itself many times over. Even if it's just the ability to regularly get filled between the spread it pays for itself.
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Robinhood isn't a bitcoin company. That's just a feature they have. Its main product offering is the commision free trading--and their presence pushed a lot of big players to adopt the same offering. The wallstreetbets gang is silly and all, but I think they have really democratized stock trading, and made the whole idea seem much more accesible. I think they founders are former finance guys. I hope this doesn't soun…
> I think they have really democratized stock trading I would think Vanguard did that already. Most people should be trading ETFs, not individual stocks.
I have mixed feelings of sympathy about this whole RH thing. Anyone who has used RH regularly should be well aware of how inept it is. Any spikes in volume or volatility, even on a single stock, bring it to it's knees pretty often. Like not just the last week, but even during calm periods. I've personally lost 20-30% on positions solely because RH was bugging out, thankfully I use RH just for "fun trades" usually I c…
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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" ?