Fuck Robinhood
They can suck a fat nut. Robinhood is going to lose so many customers after this and I’m happy af about it. They deserve what’s coming to them. Burn mother fucker burn.
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Who gives a fuck? Why do you give a fuck? You're not even allowed to use Robinhood if you're actually in IB.
Many people give a fuck.
Not everyone on here is in IB.
Not every IB blocks Robinhood.
You're on the IB forum, you tard
Jesus Christ, what he means is your not in the FRONT OFFICE.
GET TO THE BACK OFFICE KID.
"IB" MEANS "Investment Banking Division" = The Deal Markers.
*** Also applicable to S&T people since very restricted on personal accounts.
In all seriousness, they are doing this for exposure reasons. They can get fucked if the other guy doesnt pay up. Does anyone know the mechanics of this. Are there short positions to be made?
You’re retarded kid.
For being right?
You were trying to defend Leon Black's totally legit $180 MM payment to Jeff Epstein and now this? It's so edgy to stick up for the big guy over the common man.
Simpin for a pedo
When you fall asleep, me and my boys are going to take turns taking monster dumps all over your chest
It´s not only Robinhood at this point. But this has sparked a lot of outrage thus far. WSB literally made Robinhood relevant, and now they´re getting screwed by them.
What people seem to be forgetting is that Robinhood’s customers are not individual investors. Robinhood only gets paid by institutional investors in return for trade data. Commission free trading has a cost, which is evident now that they’ve closed the market in order to satisfy those who actually have control. It’s sad that individual investors can’t invest like the large players, but it’s been like this the whole time whether attention was being brought to it or not. The stock market, contrary to what many think, is not a democracy. Maybe it should be, but there are also many valid arguments as to why it shouldn’t be. I’m watching all of this with detachment and it’s been wild to say the least, but I think neither side has a moral upper hand. Robinhood is pretty sackless though for creating an image of a completely free and democratized market and then bending over for their bosses when it really came down to it.
Yes, you´re right on that, but the fact that they (and other Brokers) halted trading but still allowed selling is crazy imo. The backlash has been strong so far, and there might actually be repercussions for that.
It’s definitely crazy. I think what’s surprising is the response wasn’t expected, and it’ll be interesting to see how the SEC treats all of the players in this mess. There are a few people on the Reddit side who might be concerned, Robinhood is clearly in the crosshairs, and some of the HFs involved might get hit as well. It’s once again shaping up to be a populist vs elitist showdown, which seems to be happening a lot more often now...
Trying to prevent even more people from losing their shirt in this fiasco? How many kids are going to convince their parents to put their entire life savings into GameStop because it’s “GoIiiiiNnnNnnG toOoooo ThHhheeeEe MooooOoN”? And then they will lose it all as soon as the price drops. I really am coming the conclusion that most people on this forum who claim to be for the little guy winning are forgetting how much money the street is going to make when this bubble bursts. And how many “little guys” are going to lose everything they have.
Lmfao if you really think robinhood is doing this in the best interest/to protect retail investors. You’re fucking retarded
Yeah but the point is Robinhood shouldn’t be doing what they’re doing in order to make sure the mousetrap is working again for their institutional clients. What’s going on here is really bad. Not to mention what is going to happen when the regulators get involved for “investor protection.” Which means making sure funds aren’t ever on the wrong side of this again. If the funds were on the other side of this do you think Robinhood would give a single fuck?
Don’t you think this is going to have broader market implications? It’s incredibly shortsighted to focus only on the current moment. And for the record, they are letting those who have positions close out.
Fewer people would have lost money from the bubble popping rather than Robinhood randomly deciding to side with institutional investors.
People could still close their positions? How many heart attacks happened today when people saw it drop from 400 down to 100 in minutes? How many people on Robinhood have the qualifications to trade options and on margin? Yes people need to be responsible for themselves but come on dude.
"randomly"
If any of that were true, they’d put a hold on any trading on these stocks or shut off options trading altogether. I don’t have skin in the game but it is obvious that this was orchestrated so that funds could cover their asses. It is incredibly disturbing.
We don’t prevent people from wasting all of their money on cars, jewelry, bad marriages, child support, or bad real estate deals, why should we treat the stock market any differently?
it’s a shame that people will lose money here, but I think this could be crossing a dangerous line. If they blocked it for volume, understandable, but if it’s not for that reason or another legit one then they should be held accountable
Or what about gambling? Have heard stories of people literally losing their homes (because used as collateral).
And so what??? It's a free market, let them trade. Who is Robinhood to say what the little guys can and can't buy, its utterly asinine.
saw a guy on reddit today who was down 10 or 11 million. checked his post history to see if he was a baller. guy only has a 60k per year software engineering job and invested 250k of his company's stop options up to the ~11 million which he lost (unless GME moons tomorrow). Long #ROPE
I’m no expert but if AOC, Ted Cruz, Trump Jr. and Dave Portnoy can all agree that Robinhood is in the wrong, then fuck it I’m down
Outta the way, Avengers, this is the team-up the world needed!
pretty sure if that team of morons are united then it’s for something universally stupid
yeah this is more like South Park 2021 than the Avengers
Don’t forget Papa Musk
The New Team America: World Police
No one wants to pay broker fees but then everyone gets mad when the broker does what their clients tell them.
I can't remember if its all of their trades or just most (lets say most), but most RH trades run through Citadel. RH isn't a proper trading platform because they aren't an actual middleman.
Should RH have done it? Absolutely not and I'd be surprised if they survive the backlash (and/or potential regulation / legal action)
There's no conspiracy - the clearing houses won't make a market (Stash said this specifically).They are allowing you to close your position but won't make a market on new positions because they can't effectively lay off the risk given how volatile the stock it. Anyone who actually works in and around wall street gets this pretty quickly.
All the fox biz/CNBC hosts, politicians, celebrities and finmemers who say otherwise are showing that they don't know what the hell they are talking about and never have.
You're really looking at that Citadel exit opp, ain't you, shill?
I bet he's an MBA associate. Let's cancel his ass.
You’re so smart MBA associate. Wow
Sorry, you're not getting a job at Citadel anytime soon despite your best shilling efforts, good try
Ya...no shit, IB Associates aren't recruited at Citadel...or most any HF for that matter, plus what would one do here- emailing them a screen shot of wso?
If there were behind the scenes shenanigans, I absolutely agree - sue the shit out of them. That would be up there with Enron in terms of outright investor fraud, but what seems much more likely to me is this was a risk-mitigation play by the market makers that these trading apps use as opposed to a conspiracy. But conspiracy sounds better as a headline.
Then how do you explain the ability to take long positions on other brokerage platforms?
Fidelity has its own seat on the exchange and is a market maker in it's own right, which is my (speculative) guess as to why they continued to make markets on GME because they found ways to tighten the spread and lay off the risk. The free trading platforms all bottleneck through the same market makers (e.g. Citadel) who made the decision to stop making markets.
"Sell-only" so hedge funds can cover their short bets for the lowest price possible.
How is there NOT risk for MM if you can sell only? Keep in mind lack of BUYERS is usually the problem. And why can institutional (i.e. fucking hedge funds) still buy GME all willy nilly if there so much God damn risk?
It's obvious that Robin Hood is just a puppet for Citadel, which has its own short against GME. RH's biggest customer is Citadel. Citadel also just bought into Melvin Capital, so more incentive to screw the little guy. Plus Griffen and Cohen are BFFs by the way (and Cohen used to be Plotkin's boss and primary investor in Melvin). No way this is all completely kosher.
So first off - I've said this elsewhere - if there was insider collusion, that is a fraud in the BILLIONS and I don't know anything outside of Madoff that compares. If that's the case, I 100% agree and could even make the argument for RICO charges. .
However, I just don't see that as the case. I think this is the clearing houses covering their own ass because there was so many bids and so few offers. They couldn't effectively lay off the risk of the the flow (via buying the share they then sell to the purchasing broker/investor, again because so few lots on offer) and just shut the name down (https://finance.yahoo.com/news/webull-public-remove-restrictions-memest…).
Are you retarded? That would only make sense for writing options. There’s no fucking reason to not make a market for actual shares that someone is paying cold hard cash for
The market makers don't HAVE the shares to sell you/your broker. When you place an order with your broker, they then go to a Market Maker.
The market maker will sell your broker the share, then carry the risk of being short until they can go buy the share somewhere else. Obviously will well traded names with both buy and sell pressure (APPL, TSLA, MSFT) this is easy and instantaneous but with GME there were a ton of bids to buy, but far fewer offers - hence some MMs couldn't be certain of whether they could carry the risk without losing money, so they just shut the name down.
That's why you saw all the free apps shut down but Fidelity - who is it's own market marker - never cut off trading in GME. I suspect this was because of their huge reach and a EENSY bit of bucketing trades against their AM arms, but hey - that's a grey area.
Citadel owns Robinhood and Melvin Capital. Citadel influenced Robinhood to stop allowing people to buy gamestop to prevent the hedge fund they invested in from taking a hit. That's market manipulation.
why shouldn't citadel be able to influence robinhood if citadel owns robinhood? shouldn't you be able to influence something that you own? why else would you own something?
Because there's a conflict of interest. I would understand if Citadel had no exposure to GME shares either directly or indirectly through Melvin Capital. However, they do have exposure. That's an example of market manipulation and insider trading. There's also an allegation that Citadel shorted GME before their conversation with Robinhood, which makes it even more blatant. Robinhood provides access to people trading in the public markets. No one should take that privilege away from people unless the government has a just reason for it, and in this case the government has not ruled anything yet.
Imagine HP has a contract with with a vendor, and before severing ties with the vendor they short the company of the vendor. That's insider trading.
Because Citadel is supposed to be a designated market maker for GME....
Citadel doesn't own RH, Citadel Securties is RH's biggest customer (surprise, surprise, those RH trades aren't actually "free").
Citadel (the hedge fund) has the same common/beneficial ownership as Citadel Securities. Supposedly, there's a Chinese firewall between the two (i.e. hedge fund vs market maker), but I call absolute bullshit.
“Robinhood is going to lose so many customers”
Right, because you Reddit Incel, basement dwelling, Cheetos eating, mommy’s boys, are gonna rather trade through Goldman? Ken Griffin is your daddy... suck it.
Or.....he could move to some other brokerage that didn't breach their fiduciary duty and suck on Ken's mommy milkers????
Right, because you WSO incel, parent’s basement dwelling, beer drinking, 3rd year associate, are gonna finally make the jump to PE and out of Murray Hill...suck it.
Free trades are the new norm across all retail platforms. Robinhood was just the first to come up with it.
holy shit your mad lmao how much $ have you lost so far?
lol I do drink beer. And no, my Puts have made money because of higher IV.
Also, why you buying GME??
In the holy words of Anton Kreil, you’re all morons providing liquidity...
Don’t they have an IPO coming up?
Everyone's gonna buy OTM puts on Robinhood stock lmao (because you can't short on Robinhood for those who don't know)
Tbh, almost every brokerage suspended trading GME.
Robinhhood is just being scapegoated.
But they do have a shitty app so fuck them.
I bet there's a strong correlation between Reddit and Robinhood users, hence why its more meaningful. Robinhood is also heavily conflicted in all of this.
I don't use RH, but was still able to purchase all stocks restricted by RH (and some others), but RH just dug itself into a deep grave.
Something like 60% of all RH users owned GME stock.
Isn't fidelity one of the ones who allowed it still?
If anyone wants a Webull referral code let me know.
It's incredibly ironic because I imagine most of the people on this forum belong to the so-called 'Wall Street elite' that the Reddit crowd is targeting.
Robinhood only had relevance in the past due to the fact that they didn't charge any fees since they could afford to do so due to their relationships with hedge funds (including Citadel). Ever since the whole Schwab-Ameritrade ordeal, most platforms don't charge any fees for stocks now and minimal fees for other products. The only thing keeping Robinhood relevant was the WSB cult. They had very little reason to keep using Robinhood, especially after all the glitches the app kept having. One of the few advantages RH had was how easy it was to trade more complex securities and letting its users take more risk, but after the shit they pulled today, there's no telling what they could do next with what they allow and what they don’t.
I think RH is fucked now because (regardless as to whether or not it's actually true) many people believe Citadel colluded with RH today which pretty much soured whatever cult following they had left. The fact that RH sells data to Citadel, the fact that Citadel is RH's market maker, and the fact that Citadel was one of the ones to invest in Melvin is really pissing people off.
Not sure giving GameStop’s corporate investors a Golden parachute while leaving mom and pop to clean up the mess when the bubble bursts is the best way to own Wall Street but what do I know
Not defending RH actions, especially those relating to Citadel as I agree with most of what has already been said here. But presenting a different take, RH has already been in some deep shit regarding the kid who tragically killed himself trading options on their platform. Now they are faced with a situation that is likely to fuck over a large number of retail investors when the GME bubble pops. Not defending their decision because I do not think it was the right one (nor do I believe it is RH's responsibility to look out for autist traders) but definitely something to consider because it seems like a lose-lose situation: RH does nothing = WSB tards lose everything... RH intervenes = accused of collusion. The last thing RH needs is to be blamed for allowing anyone with a pulse and a stimulus check the ability to lose large sums of money on their platform (which I could forsee being the narrative).
WTF do I know tho. I am long way too much NOK... Never sell.
Retail investors colluded to significantly and systemically “pump” a stock price, ie, market manipulation. And the succeeded, so much so that they raised the price of GME 10x. You can’t have that, and if you tried to benefit from said market manipulation, you deserve to lose every last dollar you invested into the scheme. Also, wtf is all of this “oh so when the big guys do it it’s fine, but the common man can’t” about? In what world are banks allowed to systemically and publicly collude to pump stock prices and get away with it?
Ok my objection to this is that the funds that bet against gme didn’t use a normal pricing mechanism. They tried to short 140% of the float of a stock and price something well below its value. Also I don’t remember trading platforms halting when Carl Icahn tried to crush Bill Ackman’s short position on Herbalife. Correct me if I’m wrong.
Carl Icahn didn’t systemically, in plain English, encourage people to buy Herbalife stock to drive the price higher with the effect of increasing the price 10x over 3 days. I do agree though that hedge funds do this shit all the time, normally after they short a stock. Like Ackman saying Hilton could go to zero then buying the dip or defaming the shit out of Herbalife after opening a short position. It’s just that this instance was so obvious there wasn’t even any deniability or excuse. At least hedge fund guys pretend like they’re just sharing research or analysis.
Pump and dump schemes are illegal. Pump schemes are not. Obviously, people will sell at some point, but I'm not really sure what the end goal is here.
Coordinated efforts to manipulate stock prices are illegal. That is the precise definition of what is going on here. There is no grey area, it is market manipulation. I have no idea why AOC and everyone is bashing the exchange - an egregious crime was being committed, resulting in massive financial loss and GME rocketing up 10x, and they had to stop it. People mad at this are like drug traffickers accusing UPS of fowl-play for intercepting their packages of narcotics.
Duplicate - delete.
Robinhood is very contradicting to its own meaning.
Why would anyone use Robinhood? Joke of a fucking broker...
Lmao now cryptocurrency trading is completely down on Robinhood and people have lost thousands of dollars. No official response from them after over an hour. They probably took that money to use for their legal expenses.
This moral piss party is frankly agonising
I get it, everyone hates Wall Street but quite honestly people are greedy regardless of the current size of their checking account, it’s just that everyone hates the guy whose obviously gotten somewhere with his greed
What was going on with GameStop was bound to end in shambles. The stock market isn’t a place to make moral crusades, it’s a way to rank companies based on their performance and allocate capital to where it most optimally meets societies needs.
People were bound to lose their savings investing in these nearly failed enterprises hoping to win some moral crusade against the Wall Street bankers everyone hates
But you know what, they want to play in the arena with the big dogs, be prepared to get dominated
Do you think that people in this industry who haven’t spent their entire lives obsessing over their investments and companies aren’t willing to step on someone’s back to get ahead ? You’ve gotta be kidding me
wrong. the stock market is a casino. always has been
Lol. They pressured brokerages to HKT buying because funds were getting blown up. They didn’t play the game. They lost, and had to cheat. This has united the world.
Wall Street looks pathetic. It’s an open market. You get on the wrong side of a trade, you get burned. The greed of idiots like Melvin who didn’t fulfill their fiduciary responsibility (imagine going belly up 3 weeks into the year because you shorted a dying retailer and were outplayed by kids on a forum who had better judgment).
The internet has democratized communication, information, and now financial markets. All the advantages institutional investors had. You don’t have to go to a top school and a BB then a HF to be an amazing investor. This has changed everything. Turns out, retail investors have better DD, and investing capabilities than the pros.
Yeah agreed. Having been in IB/PE for years, most people would think of me as a "Wall Street guy" yet I'm against Wall Street here. Melvin Capital frankly should get sued into oblivion for taking such ludicrous risks with their investors' money - after all, they lost probably 50%+ of their investors' capital since January 1 in a benign market environment.
I'm not sure I agree as much that this is a complete revolution - it's more like this is the one time retail investors were able to outsmart hedge funds/institutions with a bit of luck on their side as well. But if anything that makes what Robinhood did even more egregious - being a retail investor and somehow blowing up a hedge fund is like winning the lottery, yet what Robinhood have done is at the last second snatch away the winning ticket by changing the rules of the lottery.
SB'd as I agree with part of what you're saying, however I would still say f*ck Robinhood. If they were some bog-standard broker then fine you could say that's what you get for playing in the big leagues (as you say) - but Robinhood built its brand on being for the little guys (hell even their name). Whilst that might all be marketing bs, it's one thing to say it and not really mean it - and another thing entirely to do something like this.
Also whilst I agree Gamestop is now insanely valued, provided there isn't illegal market manipulation going on (and I don't see how you can say there is here) then even retail investors should be able to buy what they want. I also think it undermines retail investors' confidence in public markets if they get the impression that if you start winning too much then the big boys change the rules (even if that's not what is happening here, the optics look absolutely atrocious).
They won’t lose customers lol
I have friends who opened other brokerage accounts the day of the trading halt to switch from Robinhood. They are losing customers
RH only makes money on institutional clients. Your basement dwelling friends leaving the platform isn't that much concern for them... they're hardly 'clients'.
You're wrong.
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