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Robinhood Has Restricted Users From Buying GME, AMC, BB, NAKD, and NOK Stocks.
- Thread starter Lucky Aces
- Start date
Is there, like, evidence for that?
Because, while I'm sure some people on WSB believed they were gonna get rich, and maybe some bad actors did egg them on, it really seems like an overwhelming majority of people just thought, "Let's fuck up this hedge fund's scam".
And it was a scam. What Melvin Capital did should be completely illegal. There's no reason that anyone should be allowed to play that kind of shell game, and the only reason they can is because nobody knows they're doing it. Look at the responses in this thread and everywhere else on the internet: people are pissed. They're pissed because the rules are inscrutable and nonsensical and clearly designed to obfuscate crime.
Regardless of anything else, if Melvin and Robin Hood acted legally here, then that's an indication there's something wrong with the system as a whole, which is what people are realizing right now.
Yeah Robinhood is done. Major outlets are now letting people know what other apps they can use instead.
Who is this person and why should I believe that they have inside information?
I don't own any stock but man this is such a shit show. Fuck these brokers. If they wanted to protect people they would've had tons of safeguards, limits, and education available beforehand, not restricting shit now that hedge funds are getting screwed.
I literally just linked what you said above " "is why robin hood and apps like it are a bad idea. They market one thing, but are actually still bound by customer risk profiles by law. I've hated these apps and their promissory language in marketing from the word jump, and this is just proving my concerns valid." to my husband, because you managed to perfectly articulate the sentiment/unease I felt at watching apps like RH sell "democratizing" investing without "democratizing" the information to understand the risk.
You've expressed it in a much better way than I have.
I wish some people would realize we're not trying to defend big money or whatever... it really is the concern that people who can't actually afford the risk are being allowed to take on risk so easily. ugh. I also hate payday check cashing places for similar reasons (just preying on people's not understanding stuff.)
Remember the kid that committed suicide because of a trade he thought had put him in the whole for millions? Robinhood walked away from that unscathed.
Not really, if I still day traded I would have shorted Gamestop when it hit an all time high. This was never a long term price spike. Shorting yesterday and today is the obvious move.
I would be surprised if some of the cheerleaders on wall St bets didn't ride this on the way up and back down.
Oh there are very very few people in finance that want to protect people in any way shape or form. There might be 50% of America that is interested in that. The other 50% want to take everyone for everything.
nah fam, it wasn't like that at all. There will be people who don't understand the risk and will be bag holding but what happened here was RH preventing people from buying and fucked with the price.
They're not even allowing commoners to do anything but sell. Seems pretty clear who's benefiting here, especially crazy given the ownership of the company
Then restrict margin account. How does restricting people from buying and only allow selling help them?
I have been Googling all of these trading apps for their SEC Rule 606 reports, and so far, all that I can find use Citadel Securities as their largest customer for order flow:
Ameritrade: https://www.tdameritrade.com/retail-en_us/resources/pdf/AMTD2055.pdf
Fidelity: https://capitalmarkets.fidelity.com/app/proxy/content?literatureURL=/9890182.PDF
Robinhood: https://cdn.robinhood.com/assets/robinhood/legal/RHS SEC Rule 606 Report Disclosure - Q4 2019.pdf
E-Trade: https://content.etrade.com/etrade/powerpage/pdf/q3-2020-606a.pdf
This must be how conspiracy theorists feel, but it's all publicly reported...
Ameritrade: https://www.tdameritrade.com/retail-en_us/resources/pdf/AMTD2055.pdf
Fidelity: https://capitalmarkets.fidelity.com/app/proxy/content?literatureURL=/9890182.PDF
Robinhood: https://cdn.robinhood.com/assets/robinhood/legal/RHS SEC Rule 606 Report Disclosure - Q4 2019.pdf
E-Trade: https://content.etrade.com/etrade/powerpage/pdf/q3-2020-606a.pdf
This must be how conspiracy theorists feel, but it's all publicly reported...
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Couldn't they have arranged outside recorded channels?
It honestly seems really obvious what is going on here. Even to dumbdumbs like myself. They manipulated the market.
My beef with RH has existed far before all of this.
I'm on the fuck RH train. Just not for the same reasons.
There's literally no conspiracy element at all - it's incredibly obvious
No, RH stopped allowing trading because the hammer is coming on them for letting people extend themselves beyond their means.
The whole situation is fucked, and it's because it should have been nipped in the bud last week. Artificially spiking the price of a company that has bad fundamentals never could have lasted more than a few days. They shouldn't have allowed the purchases in the first place after it was clear that retail investors with little experience were day trading based on advice from forums and twitter.
I don't think the stock market was ever designed with the Internet in mind. All this proves is you can somehow organize a large amount of people to do what you need to make the stonks rise. I feel as if the future is gonna be a lot of bots spreading misinformation and seeds to get people to do what they need so some make off with lotta money.
No, they stopped buying. You could still sell.
While hedge funds could still buy or sell as they liked.
That is supremely fucked up.
The market defenders are dug into concern trolling about how much they "care" about the retail investor. I've been seeing it all morning on the financial shows. They care so so much about the little guy lol
Should shorting >100% of the stock have been allowed to artificially drive down the price?
And now changing the rules of the game in the middle of the game (while only one side knows ahead of time) is okay? What they're doing now is tanking the price so they benefit and retail investors lose, and it's incredibly blatant.
RH is actually allowing closing out of existing positions. Just stopping the purchasing side.
Also they are closing out of positions for clients without client approval by saying its due to "unreasonable risk". Not sure if that is due to being margin related account or something else.
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Then restrict margin account? How exactly does limiting every user even with plain cash help them by only allow selling but not buying?
I have no doubt that this is true. I just don't like the framing of this as protecting consumers when they never cared for that.
Yep, that should be the story, not "some people are idiots" or "people are dumb for thinking this was some kind of proletariat revolution", at this point there's probably a lot of average people involved during a pandemic when they really need the money and the government sure as shit isn't helping much
Like how much more obvious does it need to get? The average person is now left scrambling trying to find a place where they can buy a stock they want to buy while institutions weren't inconvenienced at all and are now playing the swings which they are controlling. Just WTF. Burn it all to the ground.
I guess Citadel said "enough is enough" with the putting on of airs, after giving Melvin Capital their portion of the 3 BILLION necessary to cover Melvin's financial position after the hedge closed its GME short.
This seems fitting:
This seems fitting:
Commoners shouldn't be able to day trade. It's super risky and expensive behaviour.
I'm a former series 4/24/34 with 20 years experience in risk management and can explain a tied stock exemption to trading ahead and can calculate options deltas in my head. I can calculate maker/taker credits into my trades. I'm the kind of person who should be allowed to do this stuff because I understand the risks and fees.
I don't do it precisely because I do understand how risky it is for someone like me without a ton of money in the bank to eat those losses.
Downloading an app should not give you access to the risky shit robinhood allows.
Sure.
But when emails and phone logs are subpoenaed and there's even a whiff of doing this for the hedge funds, which there will be, it's case closed.
That's not what this is about. At all. And not every trade on RH is credit.
This already happens and HFT also need to have an end put to them. Market volatility is higher than ever because of all the HFT shops just mining maker/taker credit all day.
Right but you also shouldn't let a retail investors put too much of their net worth into a single stock. It's too risky. These laws exist because of past crashes that wiped out retail investors.
then turn off margin/options/whatever the fuck for the plebians and allow buy/sell via ECH transferred funds.
They aren't limiting it to <10k buys per day for unvetted commoners
they just turned the buy button off, you aren't allowed to pay <$2 for a certain stock with your own real money
