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minerva23 | 2 years ago

I'm surprised people still trust Robinhood after the GameStop debacle.

https://en.m.wikipedia.org/wiki/Robinhood_Markets

discuss

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jonp888|2 years ago

Why wouldn't they?

Gamestop meme traders deliberately set out to smash the system and they succeeded to a small extent. Robin Hood, in the face of the partners they rely on refusing to allow further acquisitions, did the best they could by still allowing selling.

For any normal trader what happened on one specific day to one specific stock which was deliberately manipulated on a massive scale to try and cause a trading halt is utterly irrelevant.

alephnan|2 years ago

> Why wouldn't they?

Because there are better brokerages out there.

> in the face of the partners they rely

You mean their actual customers. There are brokerages where the incentives are not perversed like this.

> did the best they could by still allowing selling

Assuming they acted in good faith to do their "best", their CEO was still incompetent failing to anticipate to liquidity issues

> what happened on one specific day to one specific stock

They halted buying on more than GME.

nairboon|2 years ago

>Robin Hood, in the face of the partners they rely on refusing to allow further acquisitions, did the best they could by still allowing selling.

You mean Robin Hood manipulated the markets? By only allowing sell orders you manipulated the price and market. In some cases they even automatically sold positions without knowledge of the retail traders.

They should have gone bankrupt, instead they robbed many retail traders.

Dah00n|2 years ago

>Gamestop meme traders deliberately set out to smash the system

That is a very strange and biased POV. They did the exact same thing as people have done for years and years, the only difference being this was joined by many people not in the industry.

helsinkiandrew|2 years ago

What do you think is wrong with the way they handled the GameStop debacle? They say they run out of cash to fund people buying GameStop on margin. They raised more from investors and opened up buying again. The facts stand up that the whole debacle was a result of their incredibly generous margin facilities. Other (better) trading platforms exist that didn't stop allowing purchases but also didn't give out $1K interest free margin.

> Robinhood restricted trading in these stocks in order to meet collateral requirements at their clearinghouse

> The [class action] case was dismissed by the Miami federal court that November, on the grounds that the plantiffs fell short of providing direct evidence of an antitrust conspiracy

jgilias|2 years ago

We like the stock