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Wait... What? You are blaming customers for being... customers? You have repeated multiple times that Robinhood essentially ran out of money. But then finally
by chrismcb 4y ago
Wait... What? You are blaming customers for being... customers?
You have repeated multiple times that Robinhood essentially ran out of money. But then finally you mentioned why people are leaving... Because they don't trust Robinhood. It doesn't matter why they stopped trading, it simply matters that they did.
- jjeaff 4y agoThe customers aren't to blame, but it's a little unfair to blame Robin Hood for what amounted to a black swan event. One of the main reasons they ran out of capital in this case was not because of the volume of trading, it was because of the one sidedness of the trades (lots of buys) and all being on one stock. RH's margin requirements skyrocketed because so much of their liability was concentrated in one stock. Risk (and this margin requirements) go up the more the risk is focused into a single point of failure.
- dragontamer 4y agoThey shouldn't have trusted Robinhood to begin with. https://www.sec.gov/news/press-release/2020-321 https://www.sec.gov/news/press-release/2020-321 Robinhood was all kinds of shady long before the GME events.