Robinhood is now limiting users to 1 share of GameStop, has restricted trading

c.newsnow.com

20 points·sodrick··8 comments

Actual link is: https://www.businessinsider.com/robinhood-restricts-gamestop...

I don't know what this newsnow thing is, but its acting suspicious.

News now is the news aggregator where the article is discovered...

Yes, and it reacts to being opened in a background tab by closing its own tab.

Which is weird.

I understand there's still trading going on overseas in after-hours trading. So foreigners from the Emirates (for example) can make money liquidating US hedge funds, but US peons can't.

Hopefully noone will do anything to piss off the Emiratis, like cancelling their fighter jet contracts or anything like that.

Who would become their customer in the future? I have never heard of a brokerage house that acts like this. They are suppose to take a little cut and not take a position on the clients interest. This is kind of mind boggling to me.

Due to the way the US system works they need to put up collateral for each trade for 2 days. And they can't use customer funds for that, has to be their own money. So to avoid running out of cash they will limit trading.

More details in this Twitter thread: https://twitter.com/KralcTrebor/status/1355172567242469377

It's definitely not only Robinhood restricting trading the last few days. There may be differences in Robinhood's behavior and risk management, but I wouldn't trust any article that doesn't put it in context with all the other brokers.

I’m looking in starting a brokerage where we take all your money and then change TOS so you can only have shares in the brokerage, which you can’t sell. Nonvoting. Then I’m leaving town. I’m calling it Don’t Kill Puppies brokerage.

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