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

Robinhood Detailed Its latest phase in Complex fights over market manipulation This week’s Gametop hedge fund is the defeat of the Reddit Army. Users will be limited to holding one part of GameStop and dozens of other stocks for the present.

Many stocks were limited to five stocks, and option contracts are also limited to the most traded stocks of the same week, such as AMC and Blackberry. Positions that exceed these amounts will not be automatically sold, but will apply when the user goes under them and tries to buy again. Partial shares are also prohibited.

Any other details regarding termination of positions, expiring contracts, etc. can be found in the announcement and related FAQs.

Robinhood has said that it has stopped and now has limited business “Due to financial requirements, including SEC net capital obligations and clearinghouse deposits” – Essentially, the volume and value of trade were beyond the ability to cover legally or realistically. Trading of some stocks was halted or banned earlier this week, but the new post described which stocks were affected and how.

The company had to hurry Fund raising over one billion dollars After allegedly receiving more than half a billion in credit lines from its existing investors.

With widespread resentment in dealing with the situation and the US government taking notice, it is unlikely Robinhood’s troubles (not to mention other trading apps and platforms) are anywhere near. With new developments appearing every few hours, it is difficult to know how this particular story will develop.