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They could have also said that they'll stop giving everyone secret margin trading accounts and tell users that any trade (due to market volatility) will take 2-
by sushid 5y ago
They could have also said that they'll stop giving everyone secret margin trading accounts and tell users that any trade (due to market volatility) will take 2-3 days to close.
- gruez 5y agoThe secret margin accounts is a red herring. They need to put up deposit with the DTCC even for stocks that's "paid"[1] with settled funds, and they can't use customer funds for it. So if you bought 1 share worth $100 and the deposit requirement was 100%, then robinhood has to come up with $100 of their own cash (or borrow it from someone) to fulfill the trade. [1] quotes used because settlement actually happens 2 days after the trade is made.