Talk to me about those WITHOUT margin accounts: I buy a stack and actual cash leaves my account. That money automatically underpins the trade regardless of the time it takes to settle. How come non-margin account holders are prevented from buying?
And by the exact same mechanism, SELLING has far more inherent risk because unless the buy that clears the sell order comes from a non-margin account, the very real likelihood the buyer can’t do pay is much greater. Literally infinitely so if the buyer is the counter party that shorted the stock in the first place!
It’s absurdly indefensible for Robinhood or any other broker or clearinghouse to ban buying from non-margin accounts for the reason of liquidity risk.
The ONLY reason to ban buying but not selling is to drive the stock down to a level that provides the shorting party a chance to reload their shorts at a more favorable price.
Full stop.
So, that makes the buying ban even more outrageous because it artificially crashes the value of the stock you are holding AND unfairly allows the criminal who shorted the stock a chance to recover.
Instead of a thumb, Robinhood is putting their entire weight on the scale to cheat GME holders.
You say that only because you don't understand what else goes on to clear a trade.
https://www.cnbc.com/video/2021/01/28/interactive-brokers-chairman-worried-about-integrity-of-the-market.html