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It's not just robinhood, platforms that charge commission such as IBRK [1] have halted the trade of options (which is different from not allowing buying) but it
by sgpl 6y ago
It's not just robinhood, platforms that charge commission such as IBRK [1] have halted the trade of options (which is different from not allowing buying) but it definitely suggests some behind the scenes coordination for all these online brokers to all decide this today.
[1] https://www.axios.com/robinhood-gamestop-restrictions-370adfcb-fe22-494d-85e7-eb9c4a98bed7.html https://www.axios.com/robinhood-gamestop-restrictions-370adf...
- dcolkitt 6y agoOptions are different than equities. The possibility of losses far exceeding the initial position is easily possible. If the customer loses all their money, the broker is in the hook. IB clearly is concerned about the credit risk, when the stock could literally rise or fall by a factor of ten in a day. They’re still allowing trading in the underlying stock.
- egman_ekki 6y agoI tried through IB and could not buy GME stock either.
- sgpl 6y agoCorrect me if I'm wrong but if I'm buying a call, my downside is limited to the price that I pay for the option no? Obviously if people are selling options / etc. downside can be uncapped.