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Comment by runako | Hacker News Reader

Obviously, margin calls are legitimate. But Robin Hood obviously played an important role in the price direction that led to the margin calls. I honestly don't know how anyone could trust RH as a neutral party after this.

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Did anybody confirm whether Robinhood was automatically initiating GME sell orders for those holding not on margin?

I wonder if that will make them liable when it goes to court. The combination of forced liquidation after banning buying the security seems super sketchy to me.

What brokerages hit you with a margin call when you're UP on a stock? Margin calls are for when you fall BELOW a certain liquidity event.

His shares are for $118.93. He's up over 60%.

They can up the margin requirement, if he/she bought the shares with margin before it theoretically could trigger a margin call.

Who would accept GME as collateral for a loan?

RH is a pretty awful broker. Anyone who cares about such things pulled out a long time ago

Most of the brokers where not allowing margin for buying GME since last week and Robinhood is one of them.

Disallowing margin buying is one thing. Not letting you use our money to buy a volatile stock, that's fair game. But not letting you use your own money, that's a scam.

I am concerned for myself here. I got 3.0xxx shares on Wed. 1/27 on Robinhood for 999 bucks. I'm pretty sure I began a transfer to Robinhood of $1,000 from my bank account BEFORE I bought them. Well, the shares were in my possession in a matter of seconds after but my $1,000 won't clear until Feb 2. I have NO idea if I bought on margin and if am subject to margin call/ holding liquidation etc. If anyone has any insight I would very much appreciate it!!!! Thanks-- An idiot

It wasn’t rh alone, it’s also most other discount brokerages.

https://www.marketwatch.com/story/gamestop-amc-trading-is-no...

Not just discount brokerages.

There's a huge difference between limiting margin trading for GME and closing positions without asking a user or offering an option to put up collateral. Many brokerages did the former, and at least Schwab/Fidelity/TDA all seem to be otherwise up and running so retail investors can still buy and sell GME.

Closing without recourse during margin call if you are way below maintenance is normal operation. This is the problem with GME, it is extremely volatile and brokerages don't want to be left holding the bag when the bubble bursts and everyone who bought it on margin goes bust.

You can't buy GME on margin at most brokerages, for several weeks at least.

TD Ameritrade restricted buying from users not on margin.

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