With today's incident of restricting trading of stocks Robinhood screwed it's IPO chances, may be it will start the downward spiral for itself. Edit: This post has been very active. Can you guys also suggest on which platform to move to for trading after quitting Robinhood. It will be useful for all.
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Let’s make sure they are screwed regardless of IPO or not. Simply by taking our business elsewhere. 🦍
Yes, BUT be very careful! This prevents you from touching the said stocks until the transfer is complete. Start with transferring your cash funds only first and DO NOT BUY ANYTHING NEW from Robinhood.
Good advice brother
Short robinhood
Hahaha I like that idea
This is almost guaranteed to happen if they ever do IPO.
Screw Robinhood.
I will close my account and our family's account soon. Screw Robbinghood.
You need to show growth , not sure what kinda growth they'll be able to show now. Really sad for the people working there, they've created a good product. And it's not only Robinhoods fault. But if you pretend to be helping the "regular people" and then do a 180 once big money tells you to, be ready for the consequences.
What’s the mood like at citadel rn?
👀
I think they're screwed on a number of issues. One, they need to exist. There will be massive withdrawals and users will leave en masse. Two, you can't have ongoing legal issues during an IPO. Lots of lawsuits coming. Three, they just made a few million people hate them who, coincidentally, have been the same people mooning every other IPO over the past year. I feel bad for the employees who were counting on their RSUs.
Copy paste from hacker news: The Depository Trust & Clearing Corporation settles most listed securities transactions in America; in 2011, it did $1.7 quadrillion [1]. You've never heard of it unless you're a professional trader, but it's actually quite fascinating to read up on. Trading looks instantaneous. But settlement takes a few days. In between are a series of credit agreements. From your broker to you. From the clearinghouse to the brokers. DTCC is the clearinghouse. Robinhood is the broker. There are rules and contracts between DTCC and its members, including Robinhood [2]. Those contracts ensure that when you buy shares through your broker from a Robinhood customer, if Robinhood falls down two days later, there is collateral sufficient to make you whole. Those collateral requirements change in reference to, amongst other things, the volatility of the security. (If a broker falls down, the clearinghouse liquidates their collateral and makes their counterparty whole. More volatility means more chance the collateral will be insufficient.) In this case, collateral requirements on GME went up. Because of its volatility. So while before Robinhood had to pony up collateral for a few shares of GME for every hundred it traded, it now had to, at close of business, pony up one hundred shares' worth of collateral for every hundred it traded. That creates a cash crunch. One that exacerbates itself with every additional trade in the security. If Robinhood fails to satisfy those collateral calls, they go out of business overnight. Into receivership. Done. Most brokers have policies for these situations. Higher brokerage fees for securities on a schedule. Not making shares and cash from trades available until the trade settles, sort of like what banks do for large cheques. But I don't know if Robinhood is able to do that quickly. So instead they pulled the plug. [1] https://en.wikipedia.org/wiki/Depository_Trust_%26_Clearing_Corporation [2] https://www.dtcclearning.com/products-and-services/settlement/settlement-services/risk-management/296-risk-management-overview/2277-collateral-valuation-of-securities.html
Yeah, did they say this anywhere in their comm? If not, they don't deserve to be around.
agree with lyft. The reason for RH to pull the plug seems solid, but RH did not communicate well.
People are sheep they’ll but it
Absolutely fake company that does not stand by its principles. Hopefully everyone moves to another brokerage after this
What principle did they fail to stand by?
Robinhood
Wall street will bail them out.
Pretty sure they'll short them LOL
Pump and dump. Need to pump first.