Thursday, May 6

Robinhood is nonetheless severely restricting investing, GameStop holders can only buy just one further share

Robinhood is nonetheless severely restricting investing, GameStop holders can only buy just one further share


The Robinhood web page dwelling screen on a smartphone.

Gabby Jones | Bloomberg | Getty Images

Limitations on Robinhood traders are nevertheless limited and receiving tighter throughout the day on Friday, now only letting GameStop holders to acquire a one more share.

The stock investing app has also expanded its list of restricted shares from 13 earlier in the day to 50. With less than a fifty percent-hour left of buying and selling the record grew from 23 companies to 50.

Robinhood’s limits are rather restricting. “The table below demonstrates the maximum selection of shares and choices contracts to which you can maximize your positions,” Robinhood wrote.

The restricted list tells purchasers how numerous shares and alternatives contracts they can purchase pertaining to a distinct stability. Robinhood customers holding GameStop can only purchase just one share and up to five solutions contracts.

The inventory, which is up 50%, is effectively off its highs of the working day as the new a lot more intense limitations had been applied. Earlier in the working day, holders could get five shares of GameStop.

It was unclear whether or not customers wanting to open a GameStop place could only get a one share.

“Opening new positions in the securities outlined in the desk under is at this time allowed, but minimal,” Robinhood said in the assistance middle concept.

The most shares customers could invest in of any of the 50 stocks was five. Consumers can only buy a single share and 10 choices contracts in AMC Entertainment, which is down from an before 115 shares. Shares of AMC Entertainment are up 50% but also nicely off their highs of the day.

The stock buying and selling application has also expanded its list of restricted stocks. Some of the new names contain Advanced Micro Units, Starbucks, Novavax, Jaguar Wellness and Rolls-Royce.

On Thursday, Robinhood instructed clientele it was only allowed to sell shares, not obtain new kinds, in selected securities that ended up garnering social media interest from Reddit crowds. The agency also raised margin specifications, or the total of income in a clients account when they will be using leverage to buy a protection.

Robinhood claimed the buying and selling limits have been hazard management decisions to safeguard Robinhood and its clearinghouses, but touted that the limits would be eased on Friday.

The cost-free investing pioneer elevated $1 billion in investor money and tapped additional credit lines right away for its customers to be able to trade names like GameStop and AMC Leisure on Friday.

Even so, it seems the limits are having tighter throughout the trading working day, as the record of confined securities grows and the variety of shares clientele can invest in shrinks for specified stocks.

Robinhood did not promptly respond to CNBC’s request for comment.

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