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

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by DyslexicAtheist on Thursday January 28, 2021 @09:10AM (#25941930)

Step 0: Citadel pays Robinhood for order flow. Citadel gets to see RH's orders a few milliseconds before they're filled. Citadel may choose to front-run some of those trades.

Step 1: RH's customers and WallStreetBets start manipulating $GME. This is happening in the open.

-- https://twitter.com/toxic/status/1353890766800621569

[ Parent | on HN ]

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by coredog64 on Thursday January 28, 2021 @09:16AM (#25942010)

Dueling Twitter posts:

https://twitter.com/matt_levine/status/1354129838806872073?s...

I’m gonna go with Matt Levine over a Twitter rando, especially since the step 0 notes something that is explicitly illegal (front running)

[ Parent | on HN ]

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by clevernapkins on Thursday January 28, 2021 @11:17AM (#25944205)

Front running is illegal indeed. But it would be possible to use Robinhood's order flow data to detect momentum and decide to hold a position from that. Small difference but the effect is the same

[ Parent | on HN ]