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This makes sense. And it would make sense if they implemented this like a regular exchange-style trading halt -- no new positions in shares or options. However
by lxe 6y ago
This makes sense. And it would make sense if they implemented this like a regular exchange-style trading halt -- no new positions in shares or options.
However, Robinhood disabled the ability to buy, but not sell.
Why?
- adrr 6y agoBecause you can’t prevent people from closing their positions. You can still buy to close a short.
- perl4ever 6y agoTDA seemed to be preventing GME buys the other day even if you were closing a short call. I wondered if it was intentional or just that nobody thought about the implications of no buys.
- pochamago 6y agoIt doesn't cost them any money to close the position, so the cash crunch doesn't apply.