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RH limited 13-14 tickers, while most other brokers limited 0-2. Now, they probably had more comparative exposure to them but also the volatility and price chang
by Tenoke 6y ago
RH limited 13-14 tickers, while most other brokers limited 0-2. Now, they probably had more comparative exposure to them but also the volatility and price changed massively due to their move.
More importantly they didn't communicate any of this in advance - they must've known this was coming yet suddenly stopped all buying and auto-sold everything on margin. It's hard to believe they couldn't have e.g. halted just margin trades a day before, given a warning etc. Instead they pretended everything was fine up until it blew up, and then as their first explanation claimed they are doing it to protect investors. It was only after a lot of outrage and filled lawsuits that they hinted at the real issue. So yes, they could've played this a lot better.