News for hackers. Stuff that matters.

A comment on Robinhood denies claims that it sold GameStop shares out from under its traders. Parent comment

Re:Robinhood denies claims that it sold GameStop shares out ... by aphextron on Friday January 29, 2021 @11:50AM (#25959345)
>Enormous difference between having a margin account and trading on margin. A margin account simply means you're allowed to trade on margin, not that you have actually done so.

You're technically trading on margin when you open a new account and trade before your cash has cleared. This is most likely what happened.

[ Parent | on HN ]
Re:Robinhood denies claims that it sold GameStop shares out ... by cjcole on Friday January 29, 2021 @12:27PM (#25959842)
Ok, this makes sense, thanks.

Still, this is a horrible message to show a user who is in that situation and who did not place a sell order themselves (message wording from the article):

“We’ve received your order to sell [#] shares of [stock] at the best available price.”

This is poor communication from RH. A preventable own goal.

[ Parent | on HN ]