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

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by ehsankia on Thursday January 28, 2021 @12:37PM (#25945403)

Were the market shutdowns manual or automatic handbrakes? I know there are breaks when specific thresholds are hit that are pre-determined.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by verganileonardo on Thursday January 28, 2021 @12:42PM (#25945485)

As far as I know, they were automatic handbrakes based on excessive volatility. A feature designed to prevent chaos and people from over buying/selling due to panic.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by cwkoss on Thursday January 28, 2021 @01:28PM (#25946466)

Brokerages preventing users from buying certain stocks is clearly manual, and fairly unprecedented afaik

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by verganileonardo on Thursday January 28, 2021 @02:39PM (#25947803)

Yes. Both things happened. I was specifically talking about halting trade multiple times during the day.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by dahfizz on Thursday January 28, 2021 @12:50PM (#25945654)

There are different layers here.

Baked into the exchanges (NYSE, Nasdaq) are circuit breakers which halt all trading on certain volatility conditions. The intent is to stabilize prices. This is not what happened here.

What happened here is a broker (Robinhood) decided to not accept certain kinds of orders. It wasn't a market shutdown, it was a specific manipulation to stop the purchase but _not_ the sale of an instrument, causing the price to drop.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by ehsankia on Thursday January 28, 2021 @01:48PM (#25946864)

I was referring to what happened yesterday by NYSE, not what Robinhood did today.

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