> Unless you're talking about buying on margin, there's no risk that you'd have to absorb any loss for someone who just buys a share of the stock through you wi

> Unless you're talking about buying on margin, there's no risk that you'd have to absorb any loss for someone who just buys a share of the stock through you with their own cash. The thing is, clearing houses expect collateral up front. It's not a risk issue between Robinhood and its clients, its a risk issue between the clearing house and Robinhood. I'm not saying that this what actually happened, I'm just saying that the presented argument has plausible elements.