Robinhood is either insolvent or close to insolvent. They are limiting purchases of stocks like Starbucks.
What do you think that is going to look like as this whole thing is unwound?
Why is Robinhood insolvent? (Legitimate question from a novice in stock trading)
I think Robinhood is limiting trades of non targeted stocks as a defense of plausible deniability that they were directly involved in market manipulation. In other words they are trying to muddy the waters to claim they were only trying to protect the little guy. All I can say is good luck with that.
I have already predicted this will be the end of Robinhood.
The CEO is going to be lucky to stay out of prison. Somebody is going to have to take one for team commie and he is the most likely candidate and front runner.
the clearing house that RH uses is demanding
100% collateral as opposed to the usual 5%.
that is why RH is declining trades