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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 rurp on Thursday January 28, 2021 @08:53PM (#25952596)
>How many Robinhood users are aware that when they open an account, transfer money, and buy stocks all in the same day they're actually buying on margin?

Maybe I'm out of touch but I would guess the answer is "most". Having to wait a couple days for money to clear after being transfered to a financial institution is extremely common.

When I first deposited on RH and saw that the money was available for trading immediately my first thought wasn't "Oh the money cleared instantly", rather it was "Wow, I'm surprised they're willing to take on that risk with new accounts". Turns out, maybe RH should have given that risk a little more thought.

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Re:Robinhood is said to draw on bank credit lines amid tumult by roywiggins on Thursday January 28, 2021 @09:07PM (#25952726)
I would wager that the people who signed up for Robinhood this week were thinking "oh, sweet, they figured out how to let me fund an account fast, aren't apps great"
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Re:Robinhood is said to draw on bank credit lines amid tumult by rfurmani on Friday January 29, 2021 @12:49AM (#25954488)
It’s not just about funding your account, it’s every single trade. When you sell a stock and then immediately buy another one, the cash from your sell doesn’t actually land for a few days.
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