1/ Not sure why this is so confusing and controversial, but what *almost certainly* happened is that Robinhood's counterparty/custodians saw too much risk in Robinhood's *aggregate* account on $GME.
The custodians don't "look thru" their client's massive list of accounts...
The custodians don't "look thru" their client's massive list of accounts...
2/ Let's just say its Bank of New York custodying Robinhood's assets. And say Robinhooders own 60mm shares and Robinhood margin is, idk, $5 billion.
BONY says "Sorry, no more $GME shares for you".
They do *NOT* say, "well, let's look at all 5 million of your accounts that own..
BONY says "Sorry, no more $GME shares for you".
They do *NOT* say, "well, let's look at all 5 million of your accounts that own..
3/ that own $GME stock and handle each one individually."
People realize how absurd that is right?
That said, sucks for ppl who can't trade individually b/c of collective firm problem. But thats the system, those are the rules. Its an extremely rare risk, but its always there
People realize how absurd that is right?
That said, sucks for ppl who can't trade individually b/c of collective firm problem. But thats the system, those are the rules. Its an extremely rare risk, but its always there
4/ Play the game, know the rules. Game is risky, some risks are extreme tail events, but they are still real risks.