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>> Additional Buying Power: Gold Buying Power is money that we lend to you to buy stocks, giving you the equivalent of a line of credit for the stock market. Yo
by pooper 10y ago
>> Additional Buying Power: Gold Buying Power is money that we lend to you to buy stocks, giving you the equivalent of a line of credit for the stock market. You get up to 2x your buying power so you can invest more, and keep any profits. More information on our Help Center.
> This is called a margin account. It's interesting that they don't call it that.
This is just my guess but the phrase "buying on margin" probably doesn't test well among barely financially literate people like me. Without a formal education in economics, one of the things I've read is that buying on margin during the roaring twenties magnified the effect of the great depression (if it wasn't one of the causes outright). I am not affiliated with Robinhood. This is just a guess.
- bunderbunder 10y agoI'm sure it tested way better when they focused on saying you get to keep up to 2x the profits, and quietly failed to mention, oh hey, you might also have to eat up to 2x the losses. I haven't really looked at Robinhood before just now, but I've got to say, between this bit of verbal sleight-of-hand and the dark pattern with the fine print, they don't strike me as being a particularly scrupulous operation.