4 ms·
Robin Hood has various tricks allowing your buying power to be inflated artificially, there have been a bunch of reports about it. It also appears RH users get
by james412 6y ago
Robin Hood has various tricks allowing your buying power to be inflated artificially, there have been a bunch of reports about it.
It also appears RH users get margin accounts by default, at least from everything I've read. If that's true, it's probably the real problem.
In the EU retail traders are permitted access to margin, but brokers are required to eat any loss exceeding the value of the account. It's not enough, because it still means new "traders" are exposed to amplified volatility, thus ensuring their accounts will blow out much faster than they may have otherwise, and positions that might have recovered in a cash account get margin called and closed out at the worst possible moment.
Leverage/margin access should require similar levels of study as a private pilot's license
- X-Istence 6y ago> It also appears RH users get margin accounts by default, at least from everything I've read. If that's true, it's probably the real problem. No, you have to explicitly opt-in to it.
- mam2 6y agoNope
- X-Istence 6y agoYou have to upgrade to Robinhood Gold (which is free for the first month, then $5 a month thereafter). If and when you open a Robinhood account you have to opt-in to gold to be able to invest with margin. https://robinhood.com/us/en/support/articles/overview/ https://robinhood.com/us/en/support/articles/overview/