Cant claim free stock on robinhood meaning of trading stock deficit

This has the potential to end the company financially at least until another round of funding bails them out or regulatory if they lose their licence over. A lot of these people had never seen the VIX spike like. Schwab provides so much more information. Assume, as an oversimplification, half of them will win big, and half of them will lose it all. Does it matter? AznHisoka 9 months ago Withdrawing cash is the easy. These are the basics, and they can't even sell google play gift card for bitcoin via whatsapp should i leave my money in coinbase it right. If the market gets volatile, XIV goes. If it goes on too long, Robinhood becomes insolvent because they absorb the losses but pass the winnings on to their customers. I wrote this article myself, and it expresses my own opinions. The criteria for clearly erroneous trades are incorrect price, buying on coinbase uk coinbase to paypal is down or security though so I don't think this would qualify. It goes a bit far to say that they get "social approval" from the community. Submit a new text post. He has been focused on adding staff, and last month, he hired former Facebook colleague Paul Tarjan. Vanguard, for example, steadfastly refuses to sell their customers' order flow. Behind the scenes, the online brokerage was already bracing for financial strains. They asked to settle within 24 hours. Op fucked up.

Overview of Hidden Fees at Robinhood

They took a week to respond to my email, in which they requested my phone number. In my blog post I looked at the beginning of up to present. And in case it's not been made clear enough: it's the very opposite of a sound investment. Account Limitations. All brokerage firms that sell order flow are required by the SEC to disclose who they sell order flow to and how much they pay. This is directly from the prospects in a bold paragraph on the first page " The ETNs are riskier than securities that have intermediate or long-term investment objectives, and may not be suitable for investors who plan to hold them for longer than one day. Took me a while to figure out SFYL, couldn't get "Sucks for you, loser" out of my head even though i knew that wasn't it. Which is true Older millennials are approaching Making a high risk play and maybe going bankrupt at 18 might even be a dominant strategy. Relative value trading. Waterluvian 9 months ago I think this is called being judgment proof. Phillipharryt 9 months ago. Loughla 9 months ago. This kid didn't just click a wrong button and end up with the extra leverage, he was well aware of what he was doing. They might have a rough time getting a reasonable car loan and opt to instead buy a used car with cash, but that isn't the end of the world. Even if we concede his point, that should be priced into the stock already, no? Did they give you any insight on how damaging this has been to their balance sheet? FDs all day! Seems like a douchebag move.

In my uneducated opinion, legally, it seems both are responsible for the money. Check the webpage to see if your vote registered! Leeson was hiding losses fraudulently in error accounts as a malicious internal actor. They layers here are fascinating. I find the idea of a serious legal professional having to read through those threads on WSB actually makes me happy. PS: have you read the terms and conditions of your Robinhood Gold agreement? These 'kids' have the ability to make wise decision. Interactive Brokers IBKRwhich is the preferred broker for sophisticated retail traders, doesn't sell order flow and allows customers to route orders to any exchange they choose. This is the underlying problem it. This kid didn't just click a wrong button and end up with the extra leverage, he was well aware of what he was doing. Phillipharryt 9 months ago Well that would just be another one of the real-life consequences, good or bad, for either party involved. Robinhood not only engages in selling customer orders but seems to be making far more than their competitors from it. Wait for expiration, unfold the scheme, collect your profits, disappear. Galanwe 9 months ago Most regulatory organizations such as SEC enforce "means", rather than "results". Ultimately it's our individual screwups that get us, and but honestly allowing margin on something without tangible value to back it I'm just waiting for Bloomberg to add haupt91 videos on the front page. Liquidate the options and put your money back in index funds. When the video was first posted, multiple commenters mentioned that he'd done it before and some of CTN's comments after the fact seem to hint at penny stock broker canada how to find the best penny stocks finviz. No chance at this point, traders might have a non-zero risk of macd crossover strategy ninjatrader code for metatrader 5 fraud charge of some sort since they are purposefully misrepresenting the value of their account in order to get credit but RH is going to get stuck with the vast majority of the. There's not much incentive here to do that, anyway; it doesn't increase your expected value over cant claim free stock on robinhood meaning of trading stock deficit original coin flip. It's like Moore's law - no matter how long it's tradingview replay bu is rsi a good indicator on for, it can't go on forever.

Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders

This type of yolo nonsense and pure comedy value, from what I can gather. LandR 9 months ago. I don't think that's Robinhood's message. Any reparations they might get from their users would have to be collected individually, through a lengthy legal process, from people day trading secrets advanced scalping fxopen crypto exchange are likely unable to pay. Trust is everything in fintech. That heavy load caused the so-called domain name system, or DNS, to fail. So, the analogy still doesn't hold. It's gotta be a good insult. If they do, I definitely will move my account. Using that data, the ideal leverage ratio is day trading mistakes day trading maths. The Company extended margin loans against the security at a conservatively high collateral requirement. They won't be getting any easy plea deals. Business Robinhood starts up cash management service, a year after a botched launch. It shows the dangers of playing fast and loose as a "tech company" in heavily regulated and complex environments like fintech. You have 0 debt aside from your mortgage and a nice savings. AznHisoka 9 months ago OK, that's sensible.

He got immediately margin called the next open and since the market opened slightly up he made k. Do Robinhood users typically have nothing to lose? Or maybe not, no one really knows. Brokerages are exposed to a lot less of it than e. I don't know, they shouldn't sue them simply for taking advantage of the exploit, these users did knowingly take on leverage by borrowing money to do so. Please note, when you sell shares instead of depositing, you receive a "liquidation strike. I am not receiving compensation for it other than from Seeking Alpha. So the average daily noise of the market kills you. Bankruptcy is not as bad as everyone makes it out to be. I'm pretty sure they have thousands of these cases currently since XIV dropped, could take a minute. If you declare yourself as a control person for a company, you are typically blocked from trading that stock. Through September and October, the lot of us working there thought we were doomed and were awaiting the layoffs that never came. They could win a legal judgement that might not be able to be discharged in bankruptcy. Income and assets are king when underwriting a mortgage, credit less so depending on investor desires of the mortgage backed securities. Also, if you can make a play for real property: buy dirt. So anyone that was holding it lost if not ALL of their money, then at least most of their money. Use of this site constitutes acceptance of our User Agreement and Privacy Policy. To remove a restriction, cover any negative balance and then contact us to resolve the issue.

Example: Low-Volatility Stock

Saying that Robinhood wouldn't have want to give them that leverage, but did give it to them, doesn't really change the legal obligation to make good on a debt willingly and knowingly incurred. So the average daily noise of the market kills you. I advise my readers who are long-term investors to go with Vanguard and my readers who trade actively to go with Interactive Brokers. FDs all day! MuffinFlavored 9 months ago I think Robinhood wants to send the message that they offer a simple, elegant stock trading app. Won't be that sad. Which leads me to believe this has already happened and Robinhood is falling apart organizationally as they realize they don't have enough money to cash everyone out. Swap out the live back-end with one that fakes execution against a snapshot of prices, do whatever you can do, and verify position sizes are within leverage limits. MikeHolman 9 months ago An 18 year old isn't getting a mortgage. Employees had to call affected clients to apologize, according to people familiar with the matter. Investing has risk of loss, investing on margin entails risk of losing more than you put in. A bunch of posters trade for a living. And if they do, they will still likely have to take them to court.

We don't have all the details. That user stupidly didn't understand RH's rules around options exercise which is how he got screwed, but had he been able to td ameritrade 401k rollover reward interactive brokers reactivate account all his contracts to exp like European options allow he actually would have been fine. Mechanically, it's a hit to their shareholder equity, which you can verify with toy math if you like playing balance sheet games. Most of them probably did. General Questions. It's just the terms won't be as favorable. The whole thing was a ticking time bomb. In these cases, clients are being extended credit they likely cannot underwrite, leaving RH exposed and liable to any losses theirselves. I think a broker or marketmaker has in the order of minutes to bust a trade that is "clearly erroneous" and it has to be immediately reported. An 18 year old isn't getting a mortgage. Who knows how much money is being owed to RH and what percentage can be paid back in full? It's a conflict of interest and is bad how to earn money on bitmex bitcoin sell wall gdax you as a customer. I'm a bot, beep boop Downvote to remove Contact me Info Opt-out. Very important context. But intelligent. Robinhood is marketed open up td ameritrade account what marijuana stocks are available a commission-free stock trading product but makes a surprising percentage of their revenue directly from high-frequency trading firms. If you have any amount of money or equity held by Robinhood, you should seriously consider moving it vanguard total stock market index symbols vtsax vti gap edge in trading another broker. Have you used RH? It's hard to think of a bug or vulnerability that you couldn't compose an argument like this. This entire class of bugs should be caught via fuzz testing. The prospectus literally points it out pretty much in bold letters.

Welcome to Reddit,

Right now I am at 25x leverage because I had dollars in Instant Deposits. After digging through their SEC filings, it seems that today's Robinhood takes from the millennial and gives to the high-frequency trader. Giving buyers the ability to read it on their phone, their computer, or even print it out if they so choose. What the hell was this guys APPL position, and why did he not know what would happen long before market open? I advise my readers who are long-term investors to go with Vanguard and my readers who trade actively to go with Interactive Brokers. Let's say the user is able to profit with the options, quickly requests a transfer to their bank account and it completes. Or , depending on your definition of "normal people". That is not normal. If you execute four day trades within five days, your account will get flagged for pattern day trading for 90 days. It's safe to say anybody — even slimy companies — are in full overdrive as this is going down. All brokerage firms that sell order flow are required by the SEC to disclose who they sell order flow to and how much they pay. Hot Property. Restrictions may be placed on your account for other reasons. I've tried contacting support and haven't heard anything all week. QuadmasterXLII 9 months ago. This is not much of a deterrent. I'm just waiting for Bloomberg to add haupt91 videos on the front page.

Loughla 9 months ago. A 2x investor is still down and a 3x investor is down even. Yeah, but when this stuff becomes mainstream fodder it becomes more embarrassing japan bitcoin offline exchange tax sell mined bitcoin regulatory agencies if it is left unresolved in the public eye. I think Robinhood wants to send the message that they offer a simple, elegant stock trading app. Or in otherwords, they have around 33x leverage. Brand Publishing. Schwab provides so much more information. And what I was also thinking, is that I would warrior trading course prices broken down affiliate programs charge into bankruptcy assuming I knew what the consequences are. Keep it up. Who knows how much money is being owed to RH and what percentage can be paid back in full? Jhsto 9 months ago Much depends on the ad network. All the highly risky 3x ETFs will surely implode under the pressure of a like crash. Nearly bankrupted the firm. If you like being here, review these rules and also see Reddit's sitewide rules and informal reddiquette. The lawsuit is the latest attempt by Southern California Gas to shield itself against efforts to phase out natural gas. Zarel 9 months ago You're not understanding the math. Which in turn means they need to keep it quiet or else there will be a "run on the bank". What to do is i deleted my 2fa bitfinex how to buy bitcoin shares Robinhood screwed up, so I don't know if they really want to expose themselves any further by trying to go to court with any of these people. Unless there are criminal charges which there might bewhat could actually happen?

Sell-Only Restrictions

Those probably won't make it out of a real crash. In these cases, clients are being extended credit they likely cannot underwrite, leaving RH exposed and liable to any losses theirselves. What's really funny is when the people shitting on millennials realize they're one too. The WallStreetBets top comments seem to have this pretty much dialed in: the best case is that RH unwinds the profits you make; the worst case is, well, much worse. He got immediately margin called the next open and since the market opened slightly up he made k. It sounds to me like this is the dominant strategy for many people who dont use the traditional credit system much and are young and have no assets. Problem solved! Do they really want to go to court and claim incompetence on their own part? It's the inverse of VIX. This is true even if you don't trade options, just less likely so. This is easily the best explanation of RH's goof in this entire thread. ETrade has free trades now thanks Robinhood!

As much as RH is in the news for screwing up, I think that they have stumbled onto something that the more established brokerages either a just don't get, or b cannot replicate without the risk of losing existing customers. Now that this story has moved from one obscure subreddit to Bloomberg I don't know how they start to reclaim it if they cannot calculate numbers correctly as a brokerage. Really, everything is fine, as long as Ford share price stays above the strikes he wrote. Well, he airdropped the money over a gated billionaire neighbourhood. You will pay more for that credit, but you will what is on balance volume indicator trading doji star get it. Turns out "Move fast and break things" doesn't necessarily apply to all industries. When market opened AAPL s&p dividend aristocrats covered call index momentum trading vs trend following up and his 50k options would expire worthless professional forex charting software how automated trading software works the end of day. Any reparations they might get from their users would have to be collected individually, through a lengthy legal process, from people who are likely unable to pay. It's just that much better. I am very interested in sitting in any court room as an observer where their counsel attempts to collect. RobinHood is essentially lending unlimited money to the teenagers in question. Want to join? Right now I am at 25x leverage because I had dollars in Instant Deposits. There are limited circumstances where this is possible. Well that would just be another one of the real-life consequences, good or bad, for either party involved. Hot Property. Glad to hear they are being reassuring and customer friendly. They may not be all that they represent in their marketing. Some brokers have different nadex copy trading dukascopy rollover rates of option trading privileges, and require you to attest to a certain amount of experience to get to the highest.

MODERATORS

Even if Robinhood prosecutes everyone who perpetuates this scheme and sends them to jail, they'll still never see their money. Robinhood will either lose some capabilities or will pay more for clearing. Jhsto 9 months ago. This is called the equity premium puzzle [2]. Stomach hurting. Yes, that this bug has existed so long after it was used and publicized is scary. Itsdijital 9 months ago You need 1k subs to monetize. Op fucked up. Itsdijital 9 months ago. Other communities might have inside jokes ai stocks asx hit and run trading the short-term stock traders& 39 on WSB they're references to times people committed financially insane actions with real consequences. Tastytrade slides list of gold stock symbols their stuff was generally sound except for this, they would have shut down margin trading until the bug is fixed. Again they send a link to users emails. Which implies that many well-meaning clients are also seeing the wrong portfolio value, top dividend stocks under 20 mechanical stock trading systems trading with invalid margins? They just raised 50 million dollars a week ago according to crunchbase [0] and I doubt they have blown through that. But you'll get credit nevertheless because you can't go BK again for another 7 years. What the hell was this guys APPL position, and why did he not know what would happen long before market open? Most people don't use margin, and they don't sell covered calls, let alone do .

I also wonder if they are getting paid so much by HFT firms, they might be getting paid by similar firms in the crypto space. Even if we concede his point, that should be priced into the stock already, no? But intelligent. This is someone's risk management system failing on a trivial use case. Sounds like the old your problem vs bank's problem joke, only with smaller amounts because RH isn't Goldman. This has the potential to end the company financially at least until another round of funding bails them out or regulatory if they lose their licence over this. In these cases, clients are being extended credit they likely cannot underwrite, leaving RH exposed and liable to any losses theirselves. If the brokerage is going down and they must invoke an ACAT for you, they eat the fee. WSB is mostly innocent fun. They're really everything great and terrible about the internet and investing. LegitShady 9 months ago It sure is. That probably would help. RH can simply not offer margin if they don't want their customers to use margin. Brand Publishing.

Want to add to the discussion?

I withdrew all cash from Robinhood and urged everyone to do the same. You victim blamers are all the same. Leverage is almost always the secret sauce to institutional strategies. Exactly, these folks will be waiting 7 years for their credit to not be obliterated and maybe they might have to wait for some of that in federal prison. The fact that Robinhood even allows recursive margin is a total failure on their part. Presumably you don't pull shenanigans like this if you actually have any savings to lose. Companies rarely absorb losses due to "abuse" by their users. See a comment higher up in this thread. Further muddying the water is the fact that before they founded Robinhood, the cofounders of Robinhood built software for hedge funds and high-frequency traders. The idea that you would do something stupid that costs you more money than you could afford and possibly gets you into more trouble just so that a group of people can laugh at you and make jokes at your expense is ridiculous, but I get that some people really crave that sort of attention. But Robinhood is not being transparent about how they make their money. Generally, most people should not be trading derivatives. Itsdijital 9 months ago This seems to the be case given that so far all they have done is freeze accounts and blacklist attractive options of used for this play.

Scam calls and COVID rackets are on the rise as a result of people being stuck at home, officials warn. If you hold leveraged products on margin overnight you are taking a big risk. Seems like a douchebag. Yes, that this bug has existed so long after it was used and publicized is scary. Makes sense as it's mostly gambling. They can interactive brokers level 1 interactive brokers headquarters address will go after the rest of your external bollinger band squeez screener quanta stock chart. Phillipharryt 9 months ago Well that would just be another one of the real-life consequences, good or bad, for either party involved. Trust is everything in fintech. It sure is. Also a lot of inexperienced users probably didn't realize that stop-loss does not work after hours. So many opportunities to profit off of all these quirks. Won't be that sad. But first it would be a problem for the owners of Robinhood private stock as their shares are severely diluted for huge equity infusions. Besides, if I was insuring RH right now I would be talking about increasing premiums. CPLX 9 months ago. The whole thing was a ticking time bomb. This type of yolo nonsense and pure comedy value, from what I can gather. I am very interested in sitting in any court room as an observer where their counsel attempts to collect. Keep it up.

This is called the equity premium puzzle [2]. Market returns are almost always going to be higher than the borrowing cost. Loughla 9 months ago. Most people don't use margin, and they don't sell covered calls, let alone do. Leeson was hiding losses fraudulently in error coinbase ach transfers bitmex margin trading bot as a malicious internal actor. I wrote this article myself, and it expresses my own opinions. Makes sense as it's mostly gambling. Problem solved! LandR 9 months ago Is considered a minor in the US? I am not receiving compensation for it other than from Seeking Alpha. This is a net wealth transfer from RobinHood to the teenagers. If you have any amount of money or equity held by Robinhood, you should seriously consider moving it to another broker. KnMn 9 months ago Very important context. They could win a legal judgement that might not be able to be discharged in bankruptcy. Schwab provides so much more information. UXVY is 2x leveraged but should do amazing in a crash since it pretty much inverses the market and is a great indicator. I wonder if they can actually bust the trades here? Any other brokerage is better than they are. Gap trading futures what is a market maker etf did it get delisted from RH?

I never used credit from aside from churning some credit cards. Hence why it's reset daily, as the other two responses explain. They could win a legal judgement that might not be able to be discharged in bankruptcy. Indeed, they should be worried about their own skin. You always get a plea deal. Better margin rates than anyone except InteractiveBrokers, and Robinhood is easier to use for sure. I was trying to explain it as simply as possible - with links to something to flesh out the details. Basically, yes. Want to add to the discussion? In English folklore, Robin Hood is an outlaw who takes from the rich and gives to the poor. Let's say RobinHood went out of business tomorrow. Again, I don't have the details so I don't want to speculate too much, but apparently they've had similar "bugs", so it's possible that their entire valuation and risk model is dodgy. Of course, the more skew or kurtosis the distribution has the less accurate this equation becomes. The Company is currently evaluating pursuing the collection of the debts. But in that case, since the margin was returned, RobinHood, or its investors didn't lose anything. All applications — including other order entry systems — have bugs like these. Replace the field greens salad in your fridge with iceberg lettuce. If someone loses 50m, it could become a problem for everyone with a margin account or everyone with a cash account and uninvested cash in their Robinhood account due to Rehypothecation Risks. Selling intrinsic value, on the other hand, is selling a portion of the economic right to the underlying.

I like our generation a lot. Based on my understanding of the situation, which may be weak, I'd be a lot more momentum trading leveraged etfs day trading fidelity roth accounts to be one of these customers than I would to be RH at this point. OK, that's sensible. No chance at this point, traders might have a non-zero risk of a fraud charge of some sort since they are purposefully misrepresenting the value of their account in order to amo pharma stock reasons to invest in the stock market powerpoint credit but RH is going to get stuck with the vast majority of the. Short version is that it's a stock Exchange Traded Note ETN you can trade to bet on a lack of volatility in the market. If you have making money off bitcoin trading how long to get money from coinbase to bank amount of money or equity held by Robinhood, you should seriously consider moving it to another broker. SpelingBeeChamp 8 months ago. That capital was returned in full last week. These 'kids' have the ability to make wise decision. Market returns are almost always going to be higher than the borrowing cost. For the wins, the teenagers will keep it all, and for the losses, RobinHood will have to pay for it, because the teenagers don't have the money and will declare bankruptcy if RobinHood tries to recover it. They are showing their process in their inaction. Which is true Older millennials are approaching I'm a bot, bleepbloop. If you owe RH money, then yes. I am retarded enough to inverse Warren Buffet by going long on GE the day he abandons his million position but I am not this retarded.

Stop blaming others. The majority of hacker news members are probably millennials. Maybe the jig will eventually be up? Bugs in the software come from bugs in the process. All the highly risky 3x ETFs will surely implode under the pressure of a like crash. See the massive fluctuations in inflation as well as the DJIA? Every state is different, but e. The default YouTube one, which is essentially the only network you can easily get into with a single video, paid me 23 cents CPM for video-game genre. Which leads me to believe this has already happened and Robinhood is falling apart organizationally as they realize they don't have enough money to cash everyone out. Still have questions? And what I was also thinking, is that I would not charge into bankruptcy assuming I knew what the consequences are. S is the strike price. I'm a bot, bleep , bloop. Let me trade da options!!! Brokerage accounts are insured by SIPC similar to FDIC , but you don't want to wait N months to get reimbursed after whatever lengthy court battles are about to go down. What is the advantage of Robinhood over ETrade at this point? You get more leverage than you ought to, but why would you want infinite leverage? So it seemed like a non starter. Havoc 9 months ago. ThrustVectoring 9 months ago Not quite.

Example: High-Volatility Stock

That is why we have bankruptcy as a financial tool. It seems like a company-ending disaster for Robinhood if the bug remains exploitable now that it's on Bloomberg. They're both responsible, the difference is Robinhood has to settle the trade in a day, and then they have to try to collect from someone who likely doesn't have any assets to give them. SpelingBeeChamp 8 months ago. PS: have you read the terms and conditions of your Robinhood Gold agreement? I have tried with a couple of other brokerages, but found the entire UX to be absolutely horrendous. Then the worst case scenario is I lose everything I put into the account; I wouldn't lose the money I didn't put in my account. The document is vague and used plenty of legalese. Other communities might have inside jokes but on WSB they're references to times people committed financially insane actions with real consequences.

The PR would be a disaster. Let's do some quick math. You get a 1 in 20 chance of a million dollars and in 19 of 20 cases you go bankrupt. OK, that's sensible. To me, it looks like a bunch of people on Reddit found a bug and then, extremely ill-advisedly, exploited it flagrantly in real-money accounts they controlled. Took me a while to figure out SFYL, couldn't get "Sucks for you, loser" out of binance slow deposits yo coin wiki head even though i knew that wasn't it. Some of these reasons include: Transfer Reversals Incorrect or Outdated Information Fraud Inquiries Account Levies To remove a restriction, cover any negative balance and then contact us rsi alerts etrade fidelity futures trading ira resolve the issue. If the market gets volatile, XIV goes. I lost a lot of money last Monday due to the XIV debacle and owe Robinhood a considerable amount of money from margin. If you like being here, review these rules and also see Reddit's sitewide rules and informal reddiquette. I've tried contacting support and haven't heard anything all week. It goes a bit far to say that they get "social approval" from the community. Seems like a douchebag. Companies rarely absorb losses due to "abuse" by their users. And they reason you've never seen it is because the last few years have pretty much been all bull market with a correction supply and demand rules forex factory nadex daily trades and there. Margin shortfalls were met in a timely manner by delivery of additional shares by the customers. To remove a restriction, cover any negative balance and then contact us to resolve the issue.

Generally, most people should not be trading derivatives. If the brokerage is going down and they must invoke an ACAT for you, they eat the fee. The larger this ratio is, the more leverage you can take on. Would you trust a GP who didn't know how to use a thermometer? Making a high risk play and maybe going bankrupt at 18 might even be a dominant strategy. About Us. How to backtest in finance best buy signal on thinkorswim showed. You said "all" in your post when referring to the highly risky 3x ETFs, but if a like crash happened, then it would likely increase volatility levels, which would surely benefit holders of UVXY during that time, right? But Robinhood is not being transparent about how they make their money. Sorry to hear about your losses, but at least they are treating you nicely in this situation. Personally I trade options but I don't enable the margin feature on my account. I was trying to explain it as simply as possible - with links to something to flesh out the details. It may be priced in the stock if other traders have the same logic. I'm pretty sure they have thousands of these cases currently since XIV dropped, could take a minute. Inferior research tools 3. Giving buyers the ability to read it on their phone, their computer, or even print it out if they so choose. Glad to guide for day trading how safe is binary trading they are being reassuring and customer friendly. It's the inverse of VIX. Financial firms must have disaster plans that involve giving or transferring all of your assets back to you if it all ends.

That's why this sort of thing is so insane. Those probably won't make it out of a real crash. People at the Department of Justice are archiving all these reddit posts. It's going to be okay man. I'm not even a pessimistic guy. Welcome to Reddit, the front page of the internet. So anyone that was holding it lost if not ALL of their money, then at least most of their money. You are amazing. Hacker News new past comments ask show jobs submit. Replace your organic free-trade coffee with Folgers Crystals. RH's incompetence in the regulatory space has been pretty well known for quite a while now well before ir0nyman. In the throes of frantic market uncertainty, traders using Robinhood Markets Inc. An Old Hollywood studio lot, called Television Center, gets new owners. What crime is broken when a trader takes on debt that Robinhood inadvertently allowed? Income and assets are king when underwriting a mortgage, credit less so depending on investor desires of the mortgage backed securities. Of course, the more skew or kurtosis the distribution has the less accurate this equation becomes. S is the strike price. Layperson here, but isn't that called a run, and aren't those legally mandated disaster plans there to prevent runs?

Robinhood extended margin it was not legally permitted to extend Reg T is federal statute, btw. Perhaps they are out of pocket a lot of money. Did they give you any insight on how damaging this has been to their balance sheet? Isn't this essentially how the entire world economy works? Replace your organic free-trade coffee with Folgers Crystals. If the market gets volatile, XIV goes. To me, it looks like a bunch of people on Reddit found a bug and then, extremely ill-advisedly, exploited it flagrantly in real-money accounts they controlled. You can't squeeze blood from a rock. That best lightweight laptop for stock trading invest in bitcoin on etrade is now in the possession of the random trader who was on the other side of the coin toss, and there's no way to get it back because that trader legally won it. Well that would just be another one of price action al brooks pdf algo copy trade real-life consequences, good or bad, for either party involved. The idea that a startup is letting millenials trade derivatives like this is absurd in the first place. That capital was returned in full last week. It's something you would trade as a hedge or leg of a complex trade; not something you want to hold by. It would likely require a class action lawsuit by the users, and get dragged out for years. About Us. They'll have to add a standard model most likely Black Scholescome up with an forex factory calendar parsing bank transfer binary options of volatility to feed into it you can extract it from the market; implied volatilityand also solve the problem of trading simulator pro cboe forex options derivatives to their underlying.

Loughla 9 months ago. Still have questions? Animats 9 months ago Collection agency. Separately I would expect RobinHood gets a hefty fine as well. Havoc 9 months ago. Perhaps they are out of pocket a lot of money. Might be worth posting it to reddit. It's just a side effect of having an easy to use app with no fees. Stocks tumbled so hard they set off a market-wide trading halt minutes after the open. KnMn 9 months ago Very important context. Where exactly do you think the money is going to come from? Not quite the same situation, but your point is still valid. Yes they do. LandR 9 months ago Is considered a minor in the US? Making a high risk play and maybe going bankrupt at 18 might even be a dominant strategy. As much as RH is in the news for screwing up, I think that they have stumbled onto something that the more established brokerages either a just don't get, or b cannot replicate without the risk of losing existing customers. They risked billionaire VC money Robinhood's underwriting fund to take money from some other billionaire investor's bad trade. It's so strange. I don't know, they shouldn't sue them simply for taking advantage of the exploit, these users did knowingly take on leverage by borrowing money to do so. AznHisoka 9 months ago Withdrawing cash is the easy part.

But this one is just stupid. Withdrawing cash is the easy part. Not quite. Bankruptcy is not as bad as everyone makes it out to be. It's like Moore's law - no matter how long it's gone on for, it can't go on forever. And in case it's not been made clear enough: it's the very opposite of a sound investment. Even crazier is maxing out margin, but whatever. I'm not a conspiracy theorist. Selling options triggered the bug and gave you more margin than you should have had. Because of the leverage, banks need a very diversified uncorrelated portfolio in order to reduce volatility. Personally I trade options but I don't enable the margin feature on my account. SpicyLemonZest 9 months ago I guess that makes sense.