unJon
unJon 
Joined: Jul 1, 2018
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January 29th, 2021 at 1:16:51 PM permalink
Quote: SOOPOO

Yes.... but apparently the owner of Robinhood had some sort of interest in the hedge funds which were being killed by the Reddit attack. So as opposed to thinking it just provided a service, these companies are not as independent as we would think. This is third hand from younger son......



You have a link for that? I hadnít seen that theory. Iím not one to defend Robinhood. They sell their customers flow to hedge funds that front run it. Disgusting.

But, the explanation I read is that Robinhoodís prime brokerage loan was undercollateralized because all the buys would take T+3 to settle. So they actually couldnít effectuate more buys until the pledged available cash (they didnít have enough because of T+3) or other assets. They then quickly raised $1b to ameliorate the issue overnight. Not really the actions of someone in cahoots with the short sellers.
The race is not always to the swift, nor the battle to the strong; but that is the way to bet.
SOOPOO
SOOPOO
Joined: Aug 8, 2010
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January 29th, 2021 at 2:51:46 PM permalink
Quote: unJon

You have a link for that? I hadnít seen that theory. Iím not one to defend Robinhood. They sell their customers flow to hedge funds that front run it. Disgusting.

But, the explanation I read is that Robinhoodís prime brokerage loan was undercollateralized because all the buys would take T+3 to settle. So they actually couldnít effectuate more buys until the pledged available cash (they didnít have enough because of T+3) or other assets. They then quickly raised $1b to ameliorate the issue overnight. Not really the actions of someone in cahoots with the short sellers.



No link. Just phone call with son. Your explanation sounds reasonable. It is all so disgusting to me.
darkoz
darkoz
Joined: Dec 22, 2009
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January 29th, 2021 at 3:01:01 PM permalink
To see how disgusting it is Robinhood limited orders

How much?

After refusing new orders yesterday they reopened ordering with a five stock limit IN AGGREGATE.

So if you already owned three shares of GameStop you could only buy two more.

They lowered THAT to just being able to own one share.

Let me repeat. If you want to own shares of GameStop via Robinhood you can only buy one share period.

BTW they are not limiting hedge fund managers in any way.

There seems like a fix in to me.

Here is the link. https://www.google.com/amp/s/www.theverge.com/platform/amp/2021/1/29/22256419/robinhood-limits-wall-street-bets-stock-buys
For Whom the bus tolls; The bus tolls for thee
lilredrooster
lilredrooster
Joined: May 8, 2015
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January 29th, 2021 at 3:01:01 PM permalink
...............


this is what is really, really, really bad -

from a CNBC story from 2 hours ago:

"On Thursday, Robinhood told clients it was ONLY ALLOWED TO SELL SHARES, not buy new ones, in certain securities that were garnering social media attention from Reddit crowds."



https://www.cnbc.com/2021/01/29/robinhood-is-still-severely-limiting-trading-gamestop-holders-can-only-buy-one-additional-share.html



*
"𝘣𝘦𝘭𝘪𝘦𝘷𝘦 𝘩𝘢𝘭𝘧 𝘰𝘧 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶 𝘴𝘦𝘦 𝘢𝘯𝘥 𝘯𝘰𝘯𝘦 𝘰𝘧 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶 𝘩𝘦𝘢𝘳"______Edgar Allan Poe
billryan
billryan
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January 29th, 2021 at 3:13:27 PM permalink
Is Robin Hood the only place to buy these shares?
terapined
terapined
Joined: Dec 1, 2012
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January 29th, 2021 at 3:26:09 PM permalink
Quote: billryan

Is Robin Hood the only place to buy these shares?


I have a TD Ameritrade acct
It's so convenient and easy to buy stocks and mutual funds.
I dont know about puts, calls, shorts, margins, ect
Just a ploppy
I am pretty sure I can buy GME with no issues and have the trade go through instantly when the market is open because I buy out of a cash account.
I fund the account then I buy stocks
I really love my TD app
It makes it so easy it's a bit scary.
I think Robinhood is popular for buying partial shares. Take Amazon. 1 share is over 3k. I actually own 1 share. Lol
"Everybody's bragging and drinking that wine, I can tell the Queen of Diamonds by the way she shines, Come to Daddy on an inside straight, I got no chance of losing this time" -Grateful Dead- "Loser"
odiousgambit
odiousgambit
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January 29th, 2021 at 3:31:05 PM permalink
the survival of Robinhood is in question because there are no minimum deposits and they charge no commission on trades. And they allow these same easy entry people to buy on margin.

liquidity is a question mark, investors came up with a much needed 1 billion dollars yesterday
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: ďThanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!Ē She is, after all, stone deaf. ... Arnold Snyder
SOOPOO
SOOPOO
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January 29th, 2021 at 3:35:19 PM permalink
Quote: terapined

I have a TD Ameritrade acct
It's so convenient and easy to buy stocks and mutual funds.
I dont know about puts, calls, shorts, margins, ect
Just a ploppy
I am pretty sure I can buy GME with no issues and have the trade go through instantly when the market is open because I buy out of a cash account.
I fund the account then I buy stocks
I really love my TD app
It makes it so easy it's a bit scary.
I think Robinhood is popular for buying partial shares. Take Amazon. 1 share is over 3k. I actually own 1 share. Lol



Ed.... I am pretty sure there were times over the past few days you would not have been able to buy GME even if you had cash in the account to cover the purchase. They I believe did just what Robinhood did, but maybe not for as long.

I don't think anyone has answered me yet...... If you sold your GME on the Robinhood platform, and Robinhood customers were not allowed to buy GME, ...... while typing I figured it out..... It would be bought by a customer on a platform that was allowing trades....

Just as a reminder.... the exchanges (NYSE, NASDAQ) do halt trading BOTH WAYS when certain pre determined up or down percentages are reached. I am against that too, but have no real problem with it as it is clearly known by any investor when they are involved in buying or selling stocks. This was the companies (Robinhood, TD) making their own rules ON THE FLY!
Lovecomps
Lovecomps
Joined: Aug 12, 2018
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January 29th, 2021 at 4:24:02 PM permalink
Every once in awhile someone finds an untruth, or imbalance, in the system. Michael Milken found something like this when he realized how much safer some junk bonds were and was able to exploit it . This is no different.

Robin Hood is running a huge, albeit legal, pump and dump and, like they always do, sooner or later someone (a lot of someoneís) will be the LFI and be stuck holding the bag when the stock(s) return to what is their true fair value.

What they do needs to remain legal or you send the message that nobody is allowed to make money except for large funds

Iíve been trading for nearly 27 years and remember the housing bubble, the internet bubble, and most recently the Covid crash. Whatís different is that now you have a bunch of inexperienced millennials who are gambling and neither trading nor investing. I already know how this is going to end for most of the people trading via Robinhood. History repeats itself.
The best things in life are not free.
Hullabaloo
Hullabaloo
Joined: Nov 30, 2014
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Thanks for this post from:
odiousgambit
January 29th, 2021 at 6:02:33 PM permalink
I found https://www.highshortinterest.com/ to be a good place to look at short interest.

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