Robinhood margin trading glitch
Users of the free online stock-trading app Robinhood found a glitch on the platform that allowed them to use an unlimited amount of leverage to buy stocks. A Glitch in Robinhood App is Allowing Users To Trade Stocks With Excess Borrowed Funds, Giving Them Access To What Amounts To Free Money (bloomberg.com) 68 Posted by msmash on Tuesday November 05, 2019 @12:30PM from the what-in-the-world dept. The glitch enabled traders to inflate their account balances when borrowing money on margin. It wasn’t the only issue to befall Robinhood. Robinhood users took to Twitter on Thursday after their accounts showed an incorrect or low balance. Some accounts looked like they lost all their value. The Robinhood Fiasco: What Happened? In the past couple of months, a small group of crafty-yet-foolish Robinhood customers realized that they could manipulate the trading app to obtain seemingly unlimited leverage through the use of options and margin.. These customers used this leverage to effectively gamble huge amounts of money on stock movements, while only having a small amount of funds This is where the popular discount trading platform Robinhood comes in. This past week, members of the Reddit trading group WallStreetBets discovered a loophole in Robinhood’s risk management software. They’re calling it “infinite leverage” or the “infinite money cheat code.” (Does this look like a game to you?)
A Glitch in Robinhood App is Allowing Users To Trade Stocks With Excess Borrowed Funds, Giving Them Access To What Amounts To Free Money (bloomberg.com) 68 Posted by msmash on Tuesday November 05, 2019 @12:30PM from the what-in-the-world dept.
Yes, a glitch in stock-trading app Robinhood blew up on Wall Street Bets earlier this week, with traders boasting about the unlimited amounts of borrowed money the bug allowed. Users of the free online stock-trading app Robinhood found a glitch on the platform that allowed them to use an unlimited amount of leverage to buy stocks. A Glitch in Robinhood App is Allowing Users To Trade Stocks With Excess Borrowed Funds, Giving Them Access To What Amounts To Free Money (bloomberg.com) 68 Posted by msmash on Tuesday November 05, 2019 @12:30PM from the what-in-the-world dept. The glitch enabled traders to inflate their account balances when borrowing money on margin. It wasn’t the only issue to befall Robinhood.
Some Robinhood users have been manipulating the stock-trading app to trade with what they're calling "infinite leverage." The cheat code was being shared on social media site Reddit, with one
The Robinhood Fiasco: What Happened? In the past couple of months, a small group of crafty-yet-foolish Robinhood customers realized that they could manipulate the trading app to obtain seemingly unlimited leverage through the use of options and margin.. These customers used this leverage to effectively gamble huge amounts of money on stock movements, while only having a small amount of funds
7 Nov 2019 Users of Robinhood Gold — the fintech's subscription service that lets customers trade on margin for a $5 monthly fee — were able to borrow
9 Nov 2019 Yes, a glitch in stock-trading app Robinhood blew up on Wall Street Bets trading friends and the weak margin they offer there,” he explained. I believe Robinhood is violating Finra rules around margin trading though. Do they really want to go to court and claim incompetence on their own part? 19 Nov 2019 They would use Robinhood Gold, a account feature where for $5 a month you can buy 2x margin on your account balance. They would then 6 Nov 2019 The glitch allowed several other traders to access large amounts of illusive margin. A trader wrote that he had gained access to $50,000 of the Also after 1000 dollars borrowed margin robinhood charges a yearly interest of 5 %. So after the 3000 dollar deposit and the 1000 dollars of
The way this glitch worked, members of Robinhood who had $2,000 or more on deposit, and paid the $5 per month fee for Robinhood Gold, are offered margin to trade with. Margin is a line of credit through the broker. Robinhood offered this credit at 2 to 1. For every $1 on deposit, you can trade $2.
PAYING MY RENT TRADING OPTIONS ON ROBINHOOD ($560 THIS WEEK) - Duration: 17:15. Matthew Michael Investor 10,493 views 'If I had made the right trade I would have been retired now' — a Reddit user who exploited the Robinhood 'infinite money' glitch says he would do it again The glitch in Robinhood's trading app allowed users to trade with unlimited amounts of borrowed cash, with one trader saying they turned a $3,000 deposit into a more than $1.7 million position. A glitch in the stock trading app Robinhood is allowing users to trade stocks with excess borrowed funds, and the company doesn’t appear to have found a fix as of this writing. Yes, a glitch in stock-trading app Robinhood blew up on Wall Street Bets earlier this week, with traders boasting about the unlimited amounts of borrowed money the bug allowed. Users of the free online stock-trading app Robinhood found a glitch on the platform that allowed them to use an unlimited amount of leverage to buy stocks. A Glitch in Robinhood App is Allowing Users To Trade Stocks With Excess Borrowed Funds, Giving Them Access To What Amounts To Free Money (bloomberg.com) 68 Posted by msmash on Tuesday November 05, 2019 @12:30PM from the what-in-the-world dept.
7 Nov 2019 The glitch, labeled the “infinite money cheat code” by Reddit Inc. users $5 a month to trade on margin, or money borrowed from the company. So as an example of how leverage works (for a glitch-free brokerage service), a trader could deposit $1,000 in their margin account and buy