Re:Robinhood reports 43% revenue decline
by WoahNoun on Friday April 29, 2022 @04:41PM
(#31210351)
The formula for reserve requirements includes volatility as a variable. Before the meme stock frenzy, GME only required <5% of cash collateral before settlement. When volatility surged, this went to close to 100% cash collateral. RH didn't have enough cash.
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