Analysis: Robinhood protected from lawsuits by user agreement, Congress

Re:Analysis: Robinhood protected from lawsuits by user agree... by kasey_junk on Saturday January 30, 2021 @08:15PM (#25974758)

Are you suggesting RH should have only restricted new positions to people that A) hadn’t added new money to their accounts and also B) hadn’t liquidated any other positions in the last 2 days?

I suppose you could make that argument and if you wanted to encode that as law I wouldn’t vote against it, but recognize it’s going to manifest in brokerage behavior where you can’t trade as fast or you have to keep more cash in your brokerage account.

[edit] I’d also love for you to cite what law a casino would be breaking by shutting down a game mid roll because I have no direct experience there but my mental model is that Casinos have wide latitude on allowing the games to run or not.

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Re:Analysis: Robinhood protected from lawsuits by user agree... by pfisch on Sunday January 31, 2021 @01:11AM (#25976519)

I mean most normal brokerage accounts clearly show you when you are buying on margin and exactly how much settled cash you have to trade with. This is not unreasonable, and as far as I am aware is the status quo.

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Re:Analysis: Robinhood protected from lawsuits by user agree... by kasey_junk on Sunday January 31, 2021 @06:38AM (#25978072)

Both my Vanguard and Fidelity brokerage account lets me immediately trade with funds from trades prior to them settling with the DTCC. I don’t see any indication in their GUI (maybe I’m missing it?) that the trades are anything but complete once the orders are filled.

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