Re:Robinhood reports 43% revenue decline
by dragontamer on Friday April 29, 2022 @05:41PM
(#31210869)
> If majority of retail was blocked out of buying during this period
They weren't. IB halted options but the actual stock GME kept trading. I myself made a buy/sell order on TD Ameritrade in that time period and I got the receipts to prove it.
It was just a few exchanges: Robinhood and some other one, that turned off GME buys.
> Could Robinhood have disabled margin accounts and only allowed people to purchase with settled cash as a way to keep the margin requirements in check?
No. Because it takes 2 days for funds to settle, and Robinhood couldn't afford to get any more stock from their partners.
You understand that when you buy a stock on Robinhood, Robinhood has to _FIND_ that stock for you from somewhere, right? Generally speaking, it is from a seller somewhere else. If those sellers aren't giving Robinhood any shares, then Robinhood can't give any shares to their customers.
> It seems big money was conspiring against retail and makes it difficult to trust the current opaque system.
It was Robinhood's fault for not having enough collateral, and it was Robinhood's customer's fault for placing their trust in such a crappy company.
This wasn't the first time Robinhood screwed things up, and it won't be the last.
They weren't. IB halted options but the actual stock GME kept trading. I myself made a buy/sell order on TD Ameritrade in that time period and I got the receipts to prove it.
It was just a few exchanges: Robinhood and some other one, that turned off GME buys.
> Could Robinhood have disabled margin accounts and only allowed people to purchase with settled cash as a way to keep the margin requirements in check?
No. Because it takes 2 days for funds to settle, and Robinhood couldn't afford to get any more stock from their partners.
You understand that when you buy a stock on Robinhood, Robinhood has to _FIND_ that stock for you from somewhere, right? Generally speaking, it is from a seller somewhere else. If those sellers aren't giving Robinhood any shares, then Robinhood can't give any shares to their customers.
> It seems big money was conspiring against retail and makes it difficult to trust the current opaque system.
It was Robinhood's fault for not having enough collateral, and it was Robinhood's customer's fault for placing their trust in such a crappy company.
This wasn't the first time Robinhood screwed things up, and it won't be the last.