Re:Analysis: Robinhood protected from lawsuits by user agree...
by gruez on Saturday January 30, 2021 @01:54PM
(#25971809)
Also they can't use customer funds to fund the deposit, it has to be out of their pocket.
https://finance.yahoo.com/video/heres-why-robinhood-restrict...
>And we just can't afford-- well, we're not a clearing firm, but our clearing firm simply cannot afford the cost to settle those trades. We cannot use customer funds to front that cost due to regulation. So the brokerages or the clearing firms have to go into their own pockets to do it.
Re:Analysis: Robinhood protected from lawsuits by user agree...
by bmitc on Saturday January 30, 2021 @02:02PM
(#25971876)
Right. I get that. But if buying on margin is the problem, block buying on margin. Why block buying when people have the cash already settled in their account as well?
Edit: Answered in another chain.
https://finance.zacks.com/tax-rules-use-proceeds-stock-sales...
https://www.fidelity.com/learning-center/trading-investing/t...