Investors can borrow up to 50% of the holdings in their account, which in mortgage terms would be the equivalent of requiring a 50% down payment. Generally, margin works like most loans, with borrowers paying interest. Stock loans are nothing new, and Wall Street firms long have traded on margin. In a series of tweets, Tenev blamed Wall Street rules that allow two days for stock transactions to be completed, a practice he criticized as outdated, for his company's cash crunch. Sources close to Robinhood also said stock lending wasn't a key factor in a capital shortfall that caused Robinhood to curtail the purchases of certain stocks that had put the brokerage firm's future in jeopardy. The trading platform then halted margin loans to buy the retailer's shares, as the company's stock price was peaking around $480 Robinhood also tightened the lending requirements to buy GameStop shares last week to just 20% on margin, limiting the potential for amplified losses if the stock were to go down. Reddit's WallStreetBets hit by bots 05:49
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