Concerned about excessive volatility, Robinhood and a series of brokerage platforms restricted trading of Reddit stocks - Photo 1.

Concerned about excessive volatility, Robinhood and a series of brokerage platforms restrict trading group ‘Reddit shares’


Interactive Brokers said they will not allow customers to choose new positions on three stocks: AMC, GameStop and BlackBerry Ltd. In addition, this trading platform announces: “The client is not allowed to borrow margin on long positions, and short positions will require a 300% margin until further notice.”

Robinhood also restricts trading on shares of Nokia Oyj – which has risen 20% in the past three days. “We are committed to helping customers navigate this uncertainty,” said Robinhood. The company informs the client that they can close positions on these shares but cannot buy more. The above requirement applies to shares: GameStop, AMC, BlackBerry, Bed Bath & Beyond, Express, Koss, Naked Brand and Nokia.

Lately, a group of Reddit users helped fuel the boom in game retailer GameStop, causing the group to short-sell and hedge funds. At the beginning of the session 28/1, this stock increased to 513.12 USD from 18.84 USD / share at the end of last year. However, at 23.15 (Vietnam time), GME fell 56% after being suspended from trading by brokerage platforms.

On Wednesdays, TD Ameritrade by Charles Schwab Corp. has also restricted transactions on GameStop, AMC and other stocks. Amid high volatility, trading platforms including TD Ameritrade, Robinhood, Schwab and Fidelity all encountered technical problems.


Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *