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I'm also quite ignorant of investing and also contract law, but technically, Robinhood's recent disabling of buying new options or shares [1] falls under their
by EForEndeavour 6y ago
I'm also quite ignorant of investing and also contract law, but technically, Robinhood's recent disabling of buying new options or shares [1] falls under their terms of service [2]:
You agree that, without notice, _Robinhood may terminate these Terms and Conditions, or suspend your access to the Service or the Content, with or without cause at any time and effective immediately._ [...] Robinhood shall not be liable to you or any third party for the termination or suspension of the Service or the Content, or any claims related to such termination or suspension.
tl;dr: we can change what you can do on Robinhood at any time for any (or no) reason at all, and you can't do anything about it.
[1] https://old.reddit.com/r/wallstreetbets/comments/l6w4uo/robinhood_will_not_let_new_options_or_shares_be/ https://old.reddit.com/r/wallstreetbets/comments/l6w4uo/robi...
[2] https://d2ue93q3u507c2.cloudfront.net/assets/robinhood/legal/Robinhood%20Terms%20and%20Conditions.pdf https://d2ue93q3u507c2.cloudfront.net/assets/robinhood/legal...
- valvar 6y agoI am not a lawyer, but I assume that they would not get in trouble for contract breach but rather for market manipulation.
- lazide 6y agoAlso potentially for violating their duties as a broker. How the various duties to execute trades intersect with duties to protect their clients is going to be an interesting court case to follow. If it turns out the gamma squeeze or short squeeze works, RH clients could easily claim massive monetary losses.