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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
by 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 agoIt'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 agoDue 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