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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

#971

Post by [deleted] »

matttb wrote: post #824
beachwood23 wrote: post #673

Earlier quoted context omitted.

I don't think this was Robinhood's choice. Robinhood doesn't actually execute any trades. They sell user's trade orders to Citadel, a trade executor. Citadel then buys the shares on the market, and sells them to Robinhood for a slight markup. It's how Robinhood offers trades for $0 fees. You pay pennies more per share, but don't have to spend $5 per trade. Citadel, and other trade executors, are refusing to buy share…

> I don't think this was Robinhood's choice. They sure made it sound like it was their choice. https://blog.robinhood.com/news/2021/1/28/keeping-customers-...

[deleted]

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

#972

Post by einrealist »

JumpCrisscross wrote: post #725
beachwood23 wrote: post #673

Earlier quoted context omitted.

I don't think this was Robinhood's choice. Robinhood doesn't actually execute any trades. They sell user's trade orders to Citadel, a trade executor. Citadel then buys the shares on the market, and sells them to Robinhood for a slight markup. It's how Robinhood offers trades for $0 fees. You pay pennies more per share, but don't have to spend $5 per trade. Citadel, and other trade executors, are refusing to buy share…

> Citadel also bailed out Melvin fund for their short position in GME. So, Citadel has an interest in not letting the price go up any further. Citadel bailed out Melvin Capital. Not its position. Melvin doesn't have a short position anymore. Melvin made a stupid bet. Citadel bailed them out. Private sector bailouts aren't free: Citadel got its pound of flesh. Even if they bought the entire portfolio, that portfolio n…

I wonder whether Citadel was the / a major lender for the shares in the first place. That would explain a lot. But even then, I doubt that there was foul play.

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

#973

Post by kosh2 »

JumpCrisscross wrote: post #385
wyldfire wrote: post #26

Can 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…

> Can someone help me understand Robinhood's POV? Robinhood is a margin-lending options-trading broker. If a customer falls down on a trade, it is ultimately liable. If a retail customer loses money and makes a FINRA complaint that Robinhood induced them to buy through its gameified interface, it is liable. Risk and compliance likely made this call. Also, Robinhood makes its revenue from market makers. They are the c…

Robinhood didn't pull the plug. Tastyworks did the same and they said they were more or less forced by Apex Clearing. Here is CEO of interactive brokers also admitting to the reasons: https://www.youtube.com/watch?v=7RH4XKP55fM

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

#976

Post by floatingatoll »

fireeyed wrote: post #839

https://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.

'Reloaded' isn't a term I understand yet amidst the WSB stuff going on. Do you have a brief refresher on what it's slang for?

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

#977

Post by moralestapia »

beachwood23 wrote: post #673
wyldfire wrote: post #26

Can 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…

I don't think this was Robinhood's choice. Robinhood doesn't actually execute any trades. They sell user's trade orders to Citadel, a trade executor. Citadel then buys the shares on the market, and sells them to Robinhood for a slight markup. It's how Robinhood offers trades for $0 fees. You pay pennies more per share, but don't have to spend $5 per trade. Citadel, and other trade executors, are refusing to buy share…

"... the resulting SEC fines from this illegal manipulation ..."

Plus time in prison.

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

#978

Post by dillondoyle »

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…

I'm on schwab. I had a hard time executing my sell. Luckily got it around $450 haha. But only 1 share for fun. I think I had to try like 8 times for it to go through. I also had a hard ish time canceling pre-market limit orders.

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

#979

Post by dillondoyle »

fireeyed wrote: post #839

https://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.

I can't wait (and by that I mean I'm terrified) to see what politics happens in the midterms. 2007/8 -> tea party & Sarah Palin lowering the bar.

I argue economy/bailouts & anger had a large role. But obviously Obama, Obamacare, & racism played big role too.

It's palpable and poll-able how pissed off everyone except the top top % is.

I work in Democratic politics, am a relatively good earner, clearly engaged, and I'm pissed. I have a hard time understanding the other side (MAGA) but they seem even more angry all around - enough to attempt to murder Congress.

Maybe the best hope we have is the 'working class' (at this point I would categorize that as anyone making under $500k) getting pushed so far that we see real change to redistribute wealth and power back down.

I'm skeptical though because the other type of political polarization doesn't help; half these voters identify more for Trump / religious issues than their own interests.

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

#980

Post by joejohnson »

floatingatoll wrote: post #976
fireeyed wrote: post #839

https://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.

'Reloaded' isn't a term I understand yet amidst the WSB stuff going on. Do you have a brief refresher on what it's slang for?

bought more
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