Robinhood reported a 35% drop in September monthly active users

Re:Robinhood reported a 35% drop in September monthly active... by wcoenen on Thursday November 03, 2022 @09:24PM (#33460505)

I don't think Robinhood had any choice there. Trades don't settle instantly. Robinhood needs to post collateral with the Depository Trust & Clearing Corporation while settlement is pending, and the required collateral goes up with volatility. During the "GameStop debacle" they had to raise billions of USD in additional capital for this purpose, so no wonder they had to hit the brakes.

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Re:Robinhood reported a 35% drop in September monthly active... by COGlory on Thursday November 03, 2022 @10:20PM (#33461110)

They could have frozen trades in both directions.

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Re:Robinhood reported a 35% drop in September monthly active... by SamReidHughes on Thursday November 03, 2022 @10:40PM (#33461324)

They could have... prevented users from exiting their positions? How would that be better?

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Re:Robinhood reported a 35% drop in September monthly active... by COGlory on Friday November 04, 2022 @08:40AM (#33465584)

In the context of what was happening in the market (the "short squeeze" that may or may not have ever happened), allowing sells but not buys clearly biased one position, could be seen as interference.

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Re:Robinhood reported a 35% drop in September monthly active... by masterjack on Thursday November 03, 2022 @10:42PM (#33461347)

Blocking selling is a good way to get sued, so brokerages are very hesitant to do it. If the price drops the trader can claim they wanted to sell and are owed the difference. Blocking buying doesn’t have this issue since you can’t sue for theoretical gains.

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Re:Robinhood reported a 35% drop in September monthly active... by rubatuga on Thursday November 03, 2022 @10:50PM (#33461431)

I think you still can? But yeah probably much harder in court.

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