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

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by avs733 on Thursday January 28, 2021 @12:11PM (#25945016)

not having a RH account, can you trade there on leverage? I imagine if a huge number of retail traders are ending up leveraged to high hell, RH may have ended up in an uncanny financial position because of this.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by tfehring on Thursday January 28, 2021 @12:18PM (#25945119)

You can (and people frequently do) trade options on RH, which are inherently leveraged. But RH is just a broker - it’s not on the other side of the trades itself.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by avs733 on Thursday January 28, 2021 @12:33PM (#25945343)

ah okay. I wasn't sure what services RH offered and didn't. The amount of meme-ery around them had me wondering if they had decided to go beyond being a broker to try and extract more money from users like they do by selling access to their order flow.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by dv_dt on Thursday January 28, 2021 @02:30PM (#25947632)

I think the biggest thing RH offered that they may have been justified in curtailing is fractional stock buys and buys on margin. But to stop trading on buys outright is very strange.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by wfhpw on Thursday January 28, 2021 @12:20PM (#25945143)

Then they can enact a moritorium on leverage buys to protect themselves. They have no liability for clients who are buying without leverage.

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