Robinhood Traders Discovered a Glitch That Gave Them ‘Infinite Leverage’

Re:Robinhood Traders Discovered a Glitch That Gave Them ‘Inf... by webninja on Tuesday November 05, 2019 @12:51PM (#21454725)

“...I repeat this until I am sufficiently leveraged for my Personal Risk Tolerance. Right now I am at 25x leverage because I had 2000 dollars in Instant Deposits.”

Of course it’s within his risk tolerance. He has the potential to turn $50K into a lot more money and would only lose $2k if it goes south (and it did.)

It’s going to be a sad day if Robinhood goes under because a bunch of gamblers lost Robinhood a couple million dollars. It’d also be sad for them if in later developments they find out their Margin Call feature didn’t work as advertised.

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Re:Robinhood Traders Discovered a Glitch That Gave Them ‘Inf... by rollerboi on Tuesday November 05, 2019 @01:49PM (#21455368)

"Personal Risk Tolerance" has become a meme in WSB just like "literally can't go tits up" has become a meme.

"Personal Risk Tolerance" = said by /u/ControlTheNarrative before losing $50k in AAPL puts

"Literally can't go tits up" = said by /u/1ronyman before his position went literally tits up (because one side was American options while the other were European options). the dude did his DD up until that difference between American and European contracts.

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Re:Robinhood Traders Discovered a Glitch That Gave Them ‘Inf... by u10 on Tuesday November 05, 2019 @01:07PM (#21454915)

it's their own damn fault. Turns out "Move fast and break things" doesn't necessarily apply to all industries.

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Re:Robinhood Traders Discovered a Glitch That Gave Them ‘Inf... by magashna on Tuesday November 05, 2019 @01:30PM (#21455184)

Won't be that sad. They should make sure they can't be so easily exploited by the hilarious and insane dummies in WSBs.

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Re:Robinhood Traders Discovered a Glitch That Gave Them ‘Inf... by verroq on Tuesday November 05, 2019 @01:25PM (#21455132)

If you lose 50k it is your problem, if you lose 50m it is the Robinhood’s problem now.

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Re:Robinhood Traders Discovered a Glitch That Gave Them ‘Inf... by Ambele on Tuesday November 05, 2019 @03:41PM (#21456442)

If someone loses 50m, it could become a problem for everyone with a margin account or everyone with a cash account and uninvested cash in their Robinhood account due to Rehypothecation Risks.

But first it would be a problem for the owners of Robinhood private stock as their shares are severely diluted for huge equity infusions.

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Re:Robinhood Traders Discovered a Glitch That Gave Them ‘Inf... by account73466 on Tuesday November 05, 2019 @12:56PM (#21454783)

Well. Robinhood then should better debug their platform unless these bugs actually make Robinhood more money when people overleverage, lose and don't advertise it online.

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