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I'm not a Robinhood user -- do they have guaranteed stop losses? This is something that could appease lots of users (assuming it's used correctly) even in this
by _verandaguy 7y ago
I'm not a Robinhood user -- do they have guaranteed stop losses? This is something that could appease lots of users (assuming it's used correctly) even in this kind of situation (since _guaranteed_ stop losses exist pretty much for exactly this eventuality).
- nexuist 7y agoStop losses are a feature you can use on the platform, but I don't know if they were executed on time if the whole platform was down...
- kasey_junk 7y agoUsually stop losses are an exchange feature, their atomicity is sort of the point. They wouldn’t be impacted by platform outages. That said I don’t have any idea about how Robinhood implements them.
- robjan 7y agoStop loss and stop limit orders are brokerage features.
- kasey_junk 7y agoInterestingly when I was still writing trading platforms you would be dead wrong. But in the last few years at least nyse & bats no longer offer stops. https://www.google.com/amp/s/www.cnbc.com/amp/2015/11/18/why-will-the-nyse-stop-accepting-stop-orders.html https://www.google.com/amp/s/www.cnbc.com/amp/2015/11/18/why... Lots of other exchanges still offer them https://www.cmegroup.com/confluence/plugins/servlet/mobile?contentId=78447015#content/view/78447015 https://www.cmegroup.com/confluence/plugins/servlet/mobile?c... I’d be curious how brokerages actually implement stops on exchanges that don’t offer them natively because synthetic stops have notoriously bad edge cases.
- _verandaguy 7y agoSure, but guranteed stop losses are a form of insurance where, even if the platform's out and stop losses don't execute in time, the customer will be reimbursed for any money lost as a result -- this is what's really more valuable here.
- vinaypai 7y agoThe only guarantees on Robinhood is to the hedge funds they sell their order book to (i.e. actual customers) that the counterparty is dumb money.