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Because anyone buying right away after funding an account or selling the same day as buying is buying on margin. Margin is used to make a lot of the "instant" s

• gruez 6y ago
  Also they can't use customer funds to fund the deposit, it has to be out of their pocket. https://finance.yahoo.com/video/heres-why-robinhood-restricting-users-173049721.html https://finance.yahoo.com/video/heres-why-robinhood-restrict... >And we just can't afford-- well, we're not a clearing firm, but our clearing firm simply cannot afford the cost to settle those trades. We cannot use customer funds to front that cost due to regulation. So the brokerages or the clearing firms have to go into their own pockets to do it.
• bmitc 6y ago
  Right. I get that. But if buying on margin is the problem, block buying on margin. Why block buying when people have the cash already settled in their account as well? Edit: Answered in another chain. https://news.ycombinator.com/item?id=25971718 https://news.ycombinator.com/item?id=25971718