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> Robinhood is taking on a lot of risk and using that as proof that they're a profitable company. Margin positions are typically liquidated when they go negati
by lend000 10y ago
> Robinhood is taking on a lot of risk and using that as proof that they're a profitable company.
Margin positions are typically liquidated when they go negative. At worst, the customer owes Robinhood some leftover slippage after their margin gets called. And typically, margins are called before your account goes negative.
- mabbo 10y agoI agree, it's not as risky as it might be. But there's still something unsettling about lending money to people to gamble with.