How much GameStop will Robinhood let you buy? It keeps shrinking


Robinhood solely needs customers to have a restricted variety of GameStop shares, and that quantity retains getting smaller and smaller. Yesterday, the corporate halted users’ ability to buy stocks that had been related to r/WallStreetBets, together with GameStop, AMC, and Nokia, however the company promised that users would be able to buy limited quantities on Friday. At this time, it released a shifting support document that particulars simply how restricted issues are — and to barely paraphrase Lando, the deal’s getting worse on a regular basis.

When buying and selling opened earlier as we speak, customers had been restricted to proudly owning 5 shares of GameStop in mixture, which means they may solely come clean with 5 — in the event that they already had three GameStop shares, they may solely purchase two extra — however even that restriction hasn’t lasted. Quickly, the variety of shares you could possibly purchase in GME dropped to 2 after which lastly right down to a single share.

In case you personal a single share of GameStop inventory, you may’t purchase any extra from Robinhood proper now.

Right here’s the present set of restrictions, in response to Robinhood’s assist web page:

The chart at time of writing, with smaller limits and extra corporations.

And right here’s what it seemed like earlier as we speak:

A chart showing Robinhood’s stock limits

The bounds chart at 12:30PM ET on January twenty ninth.

Whereas GameStop is probably the most (in)well-known of the Wall Avenue bets, it’s not the one one, and Robinhood has been increasing the listing of which corporations are restricted all through the day. One of many shares added is AMD, which is at the moment restricted to only a single inventory as properly.

Robinhood can also be limiting the choices contracts you will get for sure corporations. To place it terribly merely: shopping for an choices contract doesn’t imply that you simply really personal the inventory. It permits the proprietor of the contract to purchase or promote the inventory in a while at an agreed-upon value.

For instance, if GameStop is at $343 a share now, and I believed it was going to go up, I may buy a name choice to purchase it at $400. If the inventory went over $400, I may then earn a living through the use of my choice to purchase that inventory, now price extra, for $400. Nonetheless, these contracts expire, and if the inventory value doesn’t rise as excessive as I anticipated, I could lose cash, which is a scenario many hedge funds are finding themselves in. (As at all times, this isn’t monetary recommendation, and I’m not a monetary adviser. That is simply an explainer of the mechanics utilizing arbitrary numbers.)

In case you purchase an choice, Robinhood may additionally theoretically sell it out from under you underneath sure situations, one thing it’s warned it could do.

In a blog post, Robinhood tried to justify the choice to halt after which restrict buying and selling, however, just like the restricted shares, customers aren’t shopping for it. The app was review-bombed on Thursday, with many customers leaving one-star critiques, complaining that the corporate wasn’t residing as much as its aim of “democratizing finance.”

A Robinhood spokesperson pointed The Verge to the aforementioned weblog publish, saying that the corporate has been clear with clients that it could be monitoring the scenario and making changes “as wanted,” and that the boundaries have been labeled as topic to vary.



Source link

We will be happy to hear your thoughts

Leave a reply

Giftsfor-you.com
Logo
Enable registration in settings - general
Compare items
  • Total (0)
Compare
0