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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 nullc on Friday January 29, 2021 @05:01PM (#25963259)
Sure. And? It used to be the case (only a couple years ago--) that you had to have an account worth at least $10k and at least represent that you had some experience to get approved for margin at most brokerages.

Although it's been a long time, I spent the first decade with a trading account without margin just fine.

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Re:Robinhood denies claims that it sold GameStop shares out ... by ziml77 on Friday January 29, 2021 @05:10PM (#25963371)
As far as I know Robinhood only lets you trade on margin if you have a pending transfer of money in. They also have a very low limit on that of $1000.
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Re:Robinhood denies claims that it sold GameStop shares out ... by MattGaiser on Friday January 29, 2021 @05:13PM (#25963396)
It is also margin trading if you buy and sell before settlement. Buying a stock, selling it a day later, and using the funds to buy something else requires a margin account.

https://www.fidelity.com/learning-center/trading-investing/t...

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Re:Robinhood denies claims that it sold GameStop shares out ... by kllrnohj on Friday January 29, 2021 @05:29PM (#25963592)
> It is also margin trading if you buy and sell before settlement

Not always, see situation #3 https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_ca...

You need margin to engage in day-trading, but you can sell a settled stock & immediately use the funds to buy something else just fine as long as you then hold onto that purchase for 2 days.

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