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This is exactly why people should be outraged. The type of risk that requires a margin call isn't present by just holding long positions in a security. Unless y
by forbiddenvoid 6y ago
This is exactly why people should be outraged. The type of risk that requires a margin call isn't present by just holding long positions in a security. Unless you are trading options or selling short, your equity is equal to your positions, and no margin call should be necessary.
They are literally using the margin call mechanic to force closures in positions that have no risk.
- jquery 6y agoUnlikely. Robinhood has something called ‘instant deposits’ which creates massive risk when used to buy something like GME with unsettled funds.
- freeone3000 6y agoAn unsettled ACH withdrawal that you initiated does not cause massive risk. It's a two-day float. There's no way to undo an ACH transfer; it's guaranteed funds. Even if you lose all of it, it doesn't matter, since they'll be paid back once the check clears.