5 ms·

Robinhood is now limiting users to 1 share of GameStop, has restricted trading

20 points by sodrick 6y ago

buffaloo 6y ago
I’m looking in starting a brokerage where we take all your money and then change TOS so you can only have shares in the brokerage, which you can’t sell. Nonvoting. Then I’m leaving town. I’m calling it Don’t Kill Puppies brokerage.
cheaprentalyeti 6y ago
I understand there's still trading going on overseas in after-hours trading. So foreigners from the Emirates (for example) can make money liquidating US hedge funds, but US peons can't. Hopefully noone will do anything to piss off the Emiratis, like cancelling their fighter jet contracts or anything like that.
deleted 6y ago
[deleted]
kayfox 6y ago
Actual link is: https://www.businessinsider.com/robinhood-restricts-gamestop-stock-trading-23-companies-app-2021-1 https://www.businessinsider.com/robinhood-restricts-gamestop... I don't know what this newsnow thing is, but its acting suspicious.
- sodrick 6y ago
  News now is the news aggregator where the article is discovered...
  - kayfox 6y ago
    Yes, and it reacts to being opened in a background tab by closing its own tab. Which is weird.
nowherebeen 6y ago
Who would become their customer in the future? I have never heard of a brokerage house that acts like this. They are suppose to take a little cut and not take a position on the clients interest. This is kind of mind boggling to me.
- perl4ever 6y ago
  It's definitely not only Robinhood restricting trading the last few days. There may be differences in Robinhood's behavior and risk management, but I wouldn't trust any article that doesn't put it in context with all the other brokers.
- t0mas88 6y ago
  Due to the way the US system works they need to put up collateral for each trade for 2 days. And they can't use customer funds for that, has to be their own money. So to avoid running out of cash they will limit trading. More details in this Twitter thread: https://twitter.com/KralcTrebor/status/1355172567242469377 https://twitter.com/KralcTrebor/status/1355172567242469377

20 points by sodrick 6y ago

I’m looking in starting a brokerage where we take all your money and then change TOS so you can only have shares in the brokerage, which you can’t sell. Nonvoting. Then I’m leaving town. I’m calling it Don’t Kill Puppies brokerage.

cheaprentalyeti 6y ago

I understand there's still trading going on overseas in after-hours trading. So foreigners from the Emirates (for example) can make money liquidating US hedge funds, but US peons can't. Hopefully noone will do anything to piss off the Emiratis, like cancelling their fighter jet contracts or anything like that.

deleted 6y ago

[deleted]

kayfox 6y ago

Actual link is: https://www.businessinsider.com/robinhood-restricts-gamestop-stock-trading-23-companies-app-2021-1 https://www.businessinsider.com/robinhood-restricts-gamestop... I don't know what this newsnow thing is, but its acting suspicious.

sodrick 6y ago
News now is the news aggregator where the article is discovered...
- kayfox 6y ago
  Yes, and it reacts to being opened in a background tab by closing its own tab. Which is weird.

nowherebeen 6y ago

Who would become their customer in the future? I have never heard of a brokerage house that acts like this. They are suppose to take a little cut and not take a position on the clients interest. This is kind of mind boggling to me.

perl4ever 6y ago
It's definitely not only Robinhood restricting trading the last few days. There may be differences in Robinhood's behavior and risk management, but I wouldn't trust any article that doesn't put it in context with all the other brokers.
t0mas88 6y ago
Due to the way the US system works they need to put up collateral for each trade for 2 days. And they can't use customer funds for that, has to be their own money. So to avoid running out of cash they will limit trading. More details in this Twitter thread: https://twitter.com/KralcTrebor/status/1355172567242469377 https://twitter.com/KralcTrebor/status/1355172567242469377