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A comment on Robinhood is said to draw on bank credit lines amid tumult. Parent comment

Re:Robinhood is said to draw on bank credit lines amid tumult by gruez on Thursday January 28, 2021 @08:51PM (#25952588)
>So while before Robinhood had to pony up collateral for a few shares of GME for every hundred it traded, it now had to, at close of business, pony up one hundred shares' worth of collateral for every hundred it traded. That creates a cash crunch.

Why is this an issue? Shouldn't robinhood already have the cash, since the trader (who bought the stock) deposited the money into robinhood prior to his purchase?

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Re:Robinhood is said to draw on bank credit lines amid tumult by travisr on Thursday January 28, 2021 @09:36PM (#25952991)
Robinhood allows up to $1,000 to be used "instantly" just by the user initiating a transfer. So Robinhood doesn't have the money yet, but the user can buy stocks -- meaning they are using Robinhood's money.
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