They are not the only one, TD Ameritrade and Alpaca are doing it too... they are on one team, we are on the other.
Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
831–840 of 1001 posts
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#832FWIW, Robinhood posted a statement on their blog[1]. Two snippets: >In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. Also: >We fundamentally believe that everyone should have access to financial markets. Cognitive dissonance to the hilt :) [1] https://blog.robinhood.com/news/2021/1/28/keeping…
At least for GME the stock is still rising uncontrollably. If the WSB crowd who mainly uses Robinhood can't buy then who is pushing the price up?
People are flooding robinhood competitors
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#833If they were just blocking margin trading or trades with unlimited risk that would be one thing. But this smacks of either paternalism or trying to manipulate the market. I hope they lose a lot of customers (or product depending on your POV).
It's absolutely market manipulation. RH gets sells order flow to Citadel, who bailed out Melvin Capital.
Someone high up at RH got their arm twisted to help their buddies close their shorts.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#834It's interesting to see the outrage about this. Everyone who has done a bit of research into this kind of broker knew this. It's the only way to get the commissionless trading they advertise with.
Just another case of "If you are not paying for it, you're not the customer; you're the product being sold".
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#835Can someone help me understand Robinhood's POV? This just seems so outrageous that there must be some sane rationale that I'm not seeing. Why do Robinhood, Reddit, Discord, etc feel like they have to respond to this? Whether the investments being made are responsible or not, it doesn't seem like it should be their place to intervene. If the hedge funds over-shorted GME and WSB recognized that and traded against that…
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Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#836For a lot of young people, the only paths to a regular life are either work hard for 5-10 years, live like a poor student, save the majority of their money and gamble that life will be affordable at the end, or just gamble away their money today. It’s so much harder to reach regular milestones that it’s sometimes not even worth the effort. I don’t think taking this away from a bunch of nihilistic young men is going t…
But what if I want to own something?
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#837Even a congresswoman has a quite strong opinion on this: https://web.archive.org/web/20210128155006/https://twitter.c... Unfortunately the tweet has already been deleted. There seems to be quite a lot of pressure.
Ted Cruz and AOC have also tweeted similar.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#838During today's short ladder immediately after Robinhood removed the ability to buy shares... • There was 443k shares sold in a single batch at $120 at 11:24:36 AM EST. • There was 347k shares sold in a single batch at $140 at 11:19:09 AM EST. Someone took a total loss of $300M from the price an hour prior OR that is a $100M short sale.
Most likely it's a large long position who is capitulating or being margin called (stopped out) by their broker. I don't think a short seller with that kind of capital would ever chase a steep drop like that.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#839https://twitter.com/justinkan/status/1354853920762253315
>Just got a tip that Citadel reloaded their shorts before they told Robinhood to stop trading $GME.
If this is true, Ken Griffin and the Robinhood founders should be in jail.
This is class warfare.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#840It's interesting to see the outrage about this. Everyone who has done a bit of research into this kind of broker knew this. It's the only way to get the commissionless trading they advertise with. Just another case of "If you are not paying for it, you're not the customer; you're the product being sold".
Not really, the outrage is over a short of GME being a customer. If the headline was about Firm XYZ without a short in GME paying $100M it wouldn't be as newsworthy.