It’s also worth noting that’s a different model than a lot of the big companies.
For example you don’t get margin on fidelity unless you apply for it and sign waivers and attest you can cover it.
And any intraday trades will garner warnings if you don’t have the cash in account to cover. After a couple they will axe the ability.
Robinhood intrinsically allows a lot more leverage and risk for their customers by default. And this isn’t their first snafu. They had people exploiting their margin defaults for basically infinite leverage a year ago, leverage these 20 somethings would never be able to cover.
For example you don’t get margin on fidelity unless you apply for it and sign waivers and attest you can cover it.
And any intraday trades will garner warnings if you don’t have the cash in account to cover. After a couple they will axe the ability.
Robinhood intrinsically allows a lot more leverage and risk for their customers by default. And this isn’t their first snafu. They had people exploiting their margin defaults for basically infinite leverage a year ago, leverage these 20 somethings would never be able to cover.