4 ms·

Before RobinHood existed, for decades retail speculators were able to trade futures on the S&P 500, Treasury bonds, FX with leverage of 10x or more.

uptownfunk 4y ago
Yes but there’s something about having it available on a phone, together with all the social elements (Twitter, Reddit, etc) that’s adding fuel to the fire. Also the fact that engagement probably correlates to trading activity (which leads to revenue) means they have every interest to make the app use as addicting and easy as possible.
- hgsgm 4y ago
  Robinhood's primary business model is to offer free trades, financed by counterparties, because RH's user base is a flow of people taking a nearly guaranteed wrong side of a trade.
  - uptownfunk 4y ago
    Regardless of who finances it, more trades means more $. They have no business unless people trade.
bravetraveler 4y ago
Or even bet in local casinos. Not every state is Texas, requiring you find a reservation to 'enjoy' slot machines. GP above has completely been missing 'opportunity' if they think we jumped exclusively from Vegas/travel destination to couch gambling Not to imply that I'm okay with the trend, just - it's been here, and reads alarmist.
- runnerup 4y ago
  > Not every state is Texas Just FYI a different state would have been more appropriate. Texas has sit-down slot machines in gas stations.
  - bravetraveler 4y ago
    Ah, I appreciate it - I mentioned Texas because it seems oddly verboten... I have yet to find those. I wanted to celebrate a few years ago and asking around, everyone said reservations!
    - runnerup 4y ago
      Yeah it’s complex. Texas doesn’t have big casinos — your impression was correct about that. But lots of small poker houses and slot machines and lottery ticket billboards.
      - User23 4y ago
        California has card rooms because poker is legally considered a game of skill and not gambling. Playing chess for money, as is common in organized tournaments as well as parks, also isn’t considered gambling. I wouldn’t be surprised if other states have similar laws.
        lupire 4y ago
        That's such a bizarre way to structure a law. Skill or not, the distinguishing feature of gambling is negative sum activity.
        User23 4y ago
        How is gambling negative sum? The total gains and losses are zero. That casino games tend to favor the house doesn’t change that. And much gambling is just private wagers.
        querulous 4y ago
        many table games and all sports betting i know of take a commission (the rake). they are definitely not zero sum

uptownfunk 4y ago

Yes but there’s something about having it available on a phone, together with all the social elements (Twitter, Reddit, etc) that’s adding fuel to the fire. Also the fact that engagement probably correlates to trading activity (which leads to revenue) means they have every interest to make the app use as addicting and easy as possible.

hgsgm 4y ago
Robinhood's primary business model is to offer free trades, financed by counterparties, because RH's user base is a flow of people taking a nearly guaranteed wrong side of a trade.
- uptownfunk 4y ago
  Regardless of who finances it, more trades means more $. They have no business unless people trade.

bravetraveler 4y ago

Or even bet in local casinos. Not every state is Texas, requiring you find a reservation to 'enjoy' slot machines. GP above has completely been missing 'opportunity' if they think we jumped exclusively from Vegas/travel destination to couch gambling Not to imply that I'm okay with the trend, just - it's been here, and reads alarmist.

runnerup 4y ago
> Not every state is Texas Just FYI a different state would have been more appropriate. Texas has sit-down slot machines in gas stations.
- bravetraveler 4y ago
  Ah, I appreciate it - I mentioned Texas because it seems oddly verboten... I have yet to find those. I wanted to celebrate a few years ago and asking around, everyone said reservations!
  - runnerup 4y ago
    Yeah it’s complex. Texas doesn’t have big casinos — your impression was correct about that. But lots of small poker houses and slot machines and lottery ticket billboards.
    - User23 4y ago
      California has card rooms because poker is legally considered a game of skill and not gambling. Playing chess for money, as is common in organized tournaments as well as parks, also isn’t considered gambling. I wouldn’t be surprised if other states have similar laws.
      - lupire 4y ago
        That's such a bizarre way to structure a law. Skill or not, the distinguishing feature of gambling is negative sum activity.
        User23 4y ago
        How is gambling negative sum? The total gains and losses are zero. That casino games tend to favor the house doesn’t change that. And much gambling is just private wagers.
        querulous 4y ago
        many table games and all sports betting i know of take a commission (the rake). they are definitely not zero sum