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Again, it was not a lie, that is how margin calls are supposed to work. If you don't want it to work that way, you have a simple solution, dont use margin to t
by djbebs 6y ago
Again, it was not a lie, that is how margin calls are supposed to work.
If you don't want it to work that way, you have a simple solution, dont use margin to trade complex financial products.
Look, i get where you're coming from, but the fact is that these are complex financial products that most people shouldn't use.
They are risky, and have non-obvious mechanisms inherent to them that make them dangerous, thats why he had to take a test before being allowed to trade them.
This was a depressed man who was trading in highly leveraged products and got spooked when he tripped over one of many stumbling blocks, and immediately killed himself over it.
Its a sad story, but there was no negligence here, and nobody to blame but himself.
- thingsgoup 6y agoI think you’re mostly right but part of what the lawsuit is about as I understand it is the idea that Robinhood is encouraging the guy to use said complex financial products that were clearly way out of his wheelhouse.
- djbebs 6y agoI hardly think that requiring a test and affirmation of responsibility before allowing trading of options to be "encouraging" people to use them. If the government were to impose such restrictions on something like voting, they would rightfully be slammed as intending to restrict and discourage voting, so how can one argue in good faith that the same restrictions imposed on something else encourage that something else?