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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts
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To: Qone0 who wrote (16562)1/29/2021 9:13:48 AM
From: Sun Tzu  Read Replies (2) of 97556
 
Reading between the lines, a picture is emerging that Robinhood had liquidity problems meeting their obligations to the clearinghouse and that is why they banned trading on GME. On the "plus" side, this potentially saves them from some of the lawsuits and regulatory investigations.

On the other hand, they've never came out straight claiming this. And they still wouldn't have the right to liquidate some of the positions that they did. To make matters worse, they got 40% of their funding from Citadel which lost a lot of money on the GME run up. A lawyer can play that as factor in the ban, especially to a jury.

Anyways, one of the lessons I have learned is that the money you save in terms of commissions dealing with discount brokers is next to nothing compared to what you lose is good execution and not having to deal with this sort of shenanigans. With deep discount brokers, there is always something.
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