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Re:Robinhood denies claims that it sold GameStop shares out ... by BoorishBears on Friday January 29, 2021 @05:40PM (#25963725)
Edit: Actually can you show me where RH even says you can trade covered options without Instant? I've only found evidence to the contrary, I think you're lying.

https://robinhood.com/us/en/support/articles/options-investi...

> NOTE: If you start options trading in your Cash account, we’ll automatically upgrade you to an Instant account.

Maybe if you've downgraded they won't upgrade you, but it's neither here nor there, covered options aren't what have allowed this to happen

If Robinhood only had covered options you'd be right back where I said it'd be: not supporting the way people are using it to enable all this.

Re:Robinhood denies claims that it sold GameStop shares out ... by nrmitchi on Friday January 29, 2021 @10:14PM (#25965664)
> NOTE: If you start options trading in your Cash account, we’ll automatically upgrade you to an Instant account.

HAHA oh my god this is terrifyingly predatory. It says "automatically", but I hope that there is a notice at least. Even if someone went to the effort to make sure that they understood their account type, it would just... change out from under them.

This is sort of like accidently using a premium feature in some SaaS platform, and being automatically upgraded into a free trial without knowing.

Re:Robinhood denies claims that it sold GameStop shares out ... by BoorishBears on Saturday January 30, 2021 @12:58AM (#25966631)
I mean I do think that's just legacy wording

You start with Robinhood Instant if your account was made any time in the last 5? or so years?

And things people know RH for won't work without it (like instant deposits and not waiting for settlement)

So options trading was actually added after most accounts had already if not all accounts were Instant

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Really the only reason people ever go to Robinhood Cash these days is trying to get around PDT restrictions... but they inevitably realize the entire experience they've been introduced to ran on margin

Re:Robinhood denies claims that it sold GameStop shares out ... by nrmitchi on Saturday January 30, 2021 @10:39AM (#25969911)
I read it more as "If you have manually downgraded to a cash account, and then go into the "Trade Options" page and buy something, we'll automatically change your account type so that it works"

But you're right that it could just be legacy wording.

Re:Robinhood denies claims that it sold GameStop shares out ... by kllrnohj on Friday January 29, 2021 @06:36PM (#25964300)
I'm not talking about Robinhood specifically but general rules & regulations (see eg https://www.fool.com/the-ascent/buying-stocks/margin-account... ). RH specifically may have their own constraints beyond what's necessary, though. In which case get yourself a better brokerage.
Re:Robinhood denies claims that it sold GameStop shares out ... by BoorishBears on Friday January 29, 2021 @11:04PM (#25965908)
Multiple brokerages have similar restrictions.

And the discussion is about Robinhood. Any reasonable person reading your comment would rightfully assume you're talking about Robinhood.