Robinhood limits users to a single share of GameStop and other stocks

Robinhood limits users to a single share of GameStop and other stocks

Robinhood has detailed its newest step within the advanced quagmire of market manipulation that’s this week’s GameStop hedge fund Reddit military debacle. Users will for the current be restricted to holding a single share of GameStop and dozens of different shares.

Several shares had been restricted to 5 shares, and choices contracts are likewise restricted on lots of the most-traded shares this week, similar to AMC and Blackberry. Positions exceeding these quantities is not going to be routinely bought, however they may apply if the consumer goes below them and tries to purchase once more. Fractional shares are additionally prohibited.

Any different specifics about positions, expiring choices contracts and so forth will be discovered within the announcement and associated FAQs.

Robinhood has mentioned that it has halted and now restricted buying and selling due to “monetary necessities, together with SEC internet capital obligations and clearinghouse deposits” — basically, the amount and worth of the buying and selling occurring was past its capability to legally or realistically cowl. Trading of sure shares was halted or restricted earlier this week, however the brand new submit particulars precisely which shares are affected and the way.

Read More:  California DMV warns of data breach after a contractor was hit by ransomware

Robinhood restricts buying and selling in GameStop after retail brouhaha shakes markets

The firm needed to swiftly increase funds totaling over a billion {dollars} from its current buyers after reportedly maxing out half a billion in credit score traces.

With widespread outrage on the dealing with of the state of affairs and the U.S. authorities taking discover, it’s unlikely Robinhood’s troubles (to not point out different buying and selling apps and platforms) are wherever close to over. With new developments showing seemingly each few hours, it’s onerous to understand how this explicit story will develop.

AOC, Ted Cruz slam Robinhood for freezing some trades amid GameStop volatility


Add comment