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The difference is this money would've gone to AWS. They could wave it without much of an issue. The counterparty for the option wasn't Robinhood but some other
by dx034 6y ago
The difference is this money would've gone to AWS. They could wave it without much of an issue. The counterparty for the option wasn't Robinhood but some other trader. The loss (if it ever existed) has to be paid by either the client or Robinhood. You can't just remove it. And for $700k many companies will go to great length to recover at least some of the money.
- vmception 6y agoWhile the similarity is that the Robinhood and Amazon losses were UI novelties which were both promptly resolved. And you are missing that brokers routinely settle for much lower amounts in bad trades.