As in the U.S. SEC looks at how Robinhood has treated GameStop trade, the Platform has limited its number of restricted stocks.
Troubled trading app Robinhood has shortened the number of restricted stocks on its website, but still retains big limits on GameStop shares.
According to its website, Robinhood reduced its list of constraints to eight separate stocks, including GameStop, AMC, BlackBerry, Express, Brilliant Brands International, Koss, Naked Brand Party and Nokia. Robinhood previously confined trading to as many as 50 stocks on Friday, CNBC reported.
As in the U.S. SEC looks at how Robinhood has treated GameStop trade, the Platform has limited its number of restricted stocks.
Troubled trading app Robinhood has shortened the number of restricted stocks on its website, but still retains big limits on GameStop shares.
According to its website, Robinhood reduced its list of constraints to eight separate stocks, including GameStop, AMC, BlackBerry, Express, Brilliant Brands International, Koss, Naked Brand Party and Nokia. Robinhood previously confined trading to as many as 50 stocks on Friday, CNBC reported.
As per the new restrictions, Robinhood users can still only buy one share of GameStop alongside five options contracts. AMC trading is capped at 10 shares and 10 options contracts.
Robinhood users who already hold a greater number of shares or contracts will have to sell their holdings in order to open more positions, the firm said:
“If you already hold a greater number of shares or contracts than the limits listed above, your positions will not be sold or closed. However, you will not be able to open more positions of each of these securities unless you sell enough of your holdings such that you are below the respective limit.”
Robinhood has been fighting to sustain its trading offerings as the r/Wallstreetbets Reddit crowd is pumping stocks like GME to fresh all-time highs. On Thursday, Robinhood halted transactions of GME after the stock soared 1,400 percent from around $20 on Jan. 12. On Friday, the company also briefly disabled instant deposits for cryptocurrency transactions, blaming “extraordinary market conditions.”
Subsequently, the United States Securities and Exchange Commission argued that it was looking into the Robinhood Platform, citing concerns over the “extreme price volatility of certain stock trading prices.”
Robinhood’s decision to avoid trading with GME was highly criticized in the trading community, with at least 100,000 critical reviews appearing on the Robinhood page of the Google Play Store. Despite Google’s subsequent attempt to scrap thousands of unfavorable feedback with its “fake review” monitoring scheme, the Robinhood app’s ranking is only down to one star, with 294,954 reviews written on release time.
In the midst of ongoing problems, users of Robinhood launched the “#robinhoodboycott” tag on Twitter, calling on traders to shift their shares away from the site. However, Robinhood is not the only organization that has trouble with GameStop short-pressure. On Saturday, the IG Group Holdings online trading site announced that it would ban all new positions on GME and AMC due to “extreme volatility” in the market.