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Don’t they already HAVE the money from the customers? These are cash buys, not margin.
by alasdair_ 6y ago
Don’t they already HAVE the money from the customers? These are cash buys, not margin.
- BoorishBears 6y agoRobinhood has defaulted new users to "Robinhood Instant" for years now So the "default" RH experience is heavily based on margin but *not! in a transparent way. Deposits from banks are instant under a certain amount (10k for me but it varies) and no T+2
- dawnerd 6y agoWell not really, a lot of people were transferring money into Robinhood but they let you trade before the money is available. I imagine that had a huge impact on their cash crunch. Still weird they weren't straight forward with the reason or why they wouldn't enable trades for cash accounts.
- anatari 6y agoThey key point that's missing here is that ALL stock trades are on "margin" because in reality it takes 2 days to settle a trade, but that is abstracted away from you by the brokerage and clearing house, and made available to you instantly. Caveat: I'm just starting to learn about all this, so it's probably not a perfectly accurate analogy.