Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by rvnx on Thursday January 28, 2021 @08:44AM (#25941616)

Interactive Brokers now blocking purchase call and put options (even to institutional investors!) on $GME, you can only close a position.

On the other side, Robinhood is asking for account to be funded with cash to execute the calls at expiration, or else they will liquidate your position :|

[ Parent | on HN ]

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by akvadrako on Thursday January 28, 2021 @09:16AM (#25942004)

This is much more signifiant than Robinhood because IBKR is one of the most professional trading platforms available for retail investors.

Some more info:

https://twitter.com/IBKR/status/1354792600004386818

[ Parent | on HN ]

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by Schweigi on Thursday January 28, 2021 @08:57AM (#25941770)

I just tested it with IBKR and was able to create a call buy order (exp 1/29, $500 strike) for a single contract.

Info: Market was closed so the order wasn’t executed but it was accepted by the order system before i cancelled it.

[ Parent | on HN ]

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by aynyc on Thursday January 28, 2021 @09:17AM (#25942024)

I don't know IBKR's system, but most OMSs will accept an order unless it's blatantly wrong such as invalid stock. It's the execution engine that really enforce the rules.

[ Parent | on HN ]

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by rvnx on Thursday January 28, 2021 @09:09AM (#25941921)

I have a message: "Transactions in this instrument are limited to closing-only trades" @ Jan29'21 300 CALL GME.

[ Parent | on HN ]

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by Schweigi on Thursday January 28, 2021 @09:24AM (#25942126)

You’re right. I get the same message for Jan 29’31 300 CALL but do not get the message for the $330 or $500 strike. Looks like its only for ITM strikes.

[ Parent | on HN ]

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by rvnx on Thursday January 28, 2021 @09:34AM (#25942270)

This is sad indeed :(

[ Parent | on HN ]

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by leonroy on Thursday January 28, 2021 @05:15PM (#25950199)

Tested IBKR today - I was able to place a simple Limit order for GME stock which was good till close but when I refreshed to view my list of orders it shows as Cancelled.

Tried it twice, did the same thing each time.

[ Parent | on HN ]

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by gmethowaway on Thursday January 28, 2021 @02:46PM (#25947899)

It's not only about options. You can't buy even 1 stock of GME on non margin account. I don't understand how it has anything to do with IB risk management.

[ Parent | on HN ]

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by firebird84 on Thursday January 28, 2021 @09:27AM (#25942169)

That last sentence is extremely scary. Do you have a source?

[ Parent | on HN ]

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by rvnx on Thursday January 28, 2021 @09:35AM (#25942297)

https://www.reddit.com/r/wallstreetbets/comments/l6plv0/robi... (unless I misunderstood something)

[ Parent | on HN ]

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by MrMan on Thursday January 28, 2021 @12:35PM (#25945367)

this is a risk management move for RH, nothing else

[ Parent | on HN ]

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by gmethowaway on Thursday January 28, 2021 @05:12PM (#25950152)

If it's just risk management, why IB doesn't allow to buy 1 GME stock on non margin account?

[ Parent | on HN ]