Robinhood Restricts Trading On GME & AMC - Is This Legal? | Coffee With Markus | Special Episode
I’m pissed! Because brokers are restricting our right to place trades! And that’s outrageous!
So in this video, I’ll talk about:
1.) What is happening?
2.) Is this legal? and
3.) Do they have the right to do this?
Before we do this, let’s take just 30 seconds to talk about what’s happening:
WallStreetBets, a popular forum on Reddit with millions of followers, decided to declare war on hedge funds, especially short sellers. They chose a few stocks as targets and drove prices up, so that ultimately Short Sellers, who were mocking the “small account traders” had to surrender and lost billions of dollars.
Amongst those stocks were Gamestop (GME), AMC Theaters (SMC), Blackberry (BB) and Bed Bath and Beyond (BBBY).
And here’s the latest development in this craziness:
Brokers are restricting trading.
It started yesterday with TD Ameritrade and Charles Schwab restricting trading on these “Reddit stocks” - and it has really spread.
Today, Robinhood decided that it is only allowing traders to sell to close positions on 12 stocks:
https://blog.robinhood.com/news/2021/1/28/keeping-customers-informed-through-market-volatility
And Interactive Brokers is only allowing traders to sell to close options on GME, AMC (AMC), and BlackBerry (BB):
https://investors.interactivebrokers.com/en/index.php?f=48199
Express (EXPR) and Koss (KOSS) are on that list, too.
And it’s requiring 100% margin on long stock positions and 300% margin on short stock positions until further notice.
And some brokers aren’t even allowing new clients!
Check out this tweet from trading app Trading 212:
https://twitter.com/Trading212/status/1354707372334264328
So let’s talk about this: Is this legal?
Yes, I’m sure there’s something way back on page 100 of the terms and conditions that allows brokers to do this.
But is it right? - Absolutely NOT!
Trading is risky. We all know that. That’s why we sign all these disclaimers.
We can’t sue brokers if we lose money.
So let us do what we want!
Dear Brokers, please listen up: THIS is America!
I’m not interested in trading Gamestop (GME), and I have talk about my reasons for it in another video. In fact, I’m VERY happy with my positions that I have in my account right now. And as you can see, I’m up XXX today.
BUT: If someone wants to go all in on GameStop, they are allowed to do that.
If somebody wants to gamble $1,000 on GME, let them us it!
Let me show you how idiotic this is:
New Concept Energy (GBR) is up 600% today. And I can buy and sell shares on GBR all day long!
But I’m not allowed to do it on Blackberry (BB)? Or Bed Back and Beyond (BBBY).
Dear brokers and clearing firms, PLEASE listen up:
If you get pressure from “the big guys” to restrict the little guys from trading, say “NO”.
It’s OUR right to do what we want with our money.
If we want to gamble in Vegas and put $1,000 on red, we are allowed to do that, right?
If we want to spend $1,000 on Lottery tickets, we are allowed to do that, right?
But we are not allowed to take $1,000 and buy Gamestop (GME) or AMC?
Give me a break!
THIS is too much!
You owe us an explanation, and “significant market volatility” is not an excuse.
I have just shown you the example of GBR: up 600%, and I can STILL buy stocks!
If you are watching this video and agree with me, share this video.
Our voices need to be heard!
THIS is wrong - and it needs to end - NOW.
#GameStop #GME #WallStreetBets
================================================================================
✅ First, subscribe to my channel here so you never miss a new video: https://bit.ly/3aLKLDz
📺 Watch My Daily Trading Routine that takes me less than 15 minutes a day: https://bit.ly/2ICZkgX
📕 Get a FREE Hardback Copy Of My New Book “The PowerX Strategy”: https://bit.ly/2wMQ7zW
💻 Need a broker? We prefer trading using tastyworks! Sign up here: https://bit.ly/3610gsk
📈 TradingView is my favorite charting platform. I use the Pro Version: https://bit.ly/2The5LI
================================================================================
tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with Rockwell Trading Services, LLC whereby tastyworks pays compensation to Rockwell Trading Services, LLC to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Rockwell Trading Services, LLC by tastyworks and/or any of its affiliated companies. Neither tastyworks nor any of its affiliated companies is responsible for the privacy practices of Rockwell Trading Services, LLC or this website. tastyworks does not warrant the accuracy or content of the products or services offered by Rockwell Trading Services, LLC or this website. Rockwell Trading Services, LLC is independent and is not an affiliate of tastyworks.
I’m pissed! Because brokers are restricting our right to place trades! And that’s outrageous!
So in this video, I’ll talk about:
1.) What is happening?
2.) Is this legal? and
3.) Do they have the right to do this?
Before we do this, let’s take just 30 seconds to talk about what’s happening:
WallStreetBets, a popular forum on Reddit with millions of followers, decided to declare war on hedge funds, especially short sellers. They chose a few stocks as targets and drove prices up, so that ultimately Short Sellers, who were mocking the “small account traders” had to surrender and lost billions of dollars.
Amongst those stocks were Gamestop (GME), AMC Theaters (SMC), Blackberry (BB) and Bed Bath and Beyond (BBBY).
And here’s the latest development in this craziness:
Brokers are restricting trading.
It started yesterday with TD Ameritrade and Charles Schwab restricting trading on these “Reddit stocks” - and it has really spread.
Today, Robinhood decided that it is only allowing traders to sell to close positions on 12 stocks:
https://blog.robinhood.com/news/2021/1/28/keeping-customers-informed-through-market-volatility
And Interactive Brokers is only allowing traders to sell to close options on GME, AMC (AMC), and BlackBerry (BB):
https://investors.interactivebrokers.com/en/index.php?f=48199
Express (EXPR) and Koss (KOSS) are on that list, too.
And it’s requiring 100% margin on long stock positions and 300% margin on short stock positions until further notice.
And some brokers aren’t even allowing new clients!
Check out this tweet from trading app Trading 212:
https://twitter.com/Trading212/status/1354707372334264328
So let’s talk about this: Is this legal?
Yes, I’m sure there’s something way back on page 100 of the terms and conditions that allows brokers to do this.
But is it right? - Absolutely NOT!
Trading is risky. We all know that. That’s why we sign all these disclaimers.
We can’t sue brokers if we lose money.
So let us do what we want!
Dear Brokers, please listen up: THIS is America!
I’m not interested in trading Gamestop (GME), and I have talk about my reasons for it in another video. In fact, I’m VERY happy with my positions that I have in my account right now. And as you can see, I’m up XXX today.
BUT: If someone wants to go all in on GameStop, they are allowed to do that.
If somebody wants to gamble $1,000 on GME, let them us it!
Let me show you how idiotic this is:
New Concept Energy (GBR) is up 600% today. And I can buy and sell shares on GBR all day long!
But I’m not allowed to do it on Blackberry (BB)? Or Bed Back and Beyond (BBBY).
Dear brokers and clearing firms, PLEASE listen up:
If you get pressure from “the big guys” to restrict the little guys from trading, say “NO”.
It’s OUR right to do what we want with our money.
If we want to gamble in Vegas and put $1,000 on red, we are allowed to do that, right?
If we want to spend $1,000 on Lottery tickets, we are allowed to do that, right?
But we are not allowed to take $1,000 and buy Gamestop (GME) or AMC?
Give me a break!
THIS is too much!
You owe us an explanation, and “significant market volatility” is not an excuse.
I have just shown you the example of GBR: up 600%, and I can STILL buy stocks!
If you are watching this video and agree with me, share this video.
Our voices need to be heard!
THIS is wrong - and it needs to end - NOW.
#GameStop #GME #WallStreetBets
================================================================================
✅ First, subscribe to my channel here so you never miss a new video: https://bit.ly/3aLKLDz
📺 Watch My Daily Trading Routine that takes me less than 15 minutes a day: https://bit.ly/2ICZkgX
📕 Get a FREE Hardback Copy Of My New Book “The PowerX Strategy”: https://bit.ly/2wMQ7zW
💻 Need a broker? We prefer trading using tastyworks! Sign up here: https://bit.ly/3610gsk
📈 TradingView is my favorite charting platform. I use the Pro Version: https://bit.ly/2The5LI
================================================================================
tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with Rockwell Trading Services, LLC whereby tastyworks pays compensation to Rockwell Trading Services, LLC to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Rockwell Trading Services, LLC by tastyworks and/or any of its affiliated companies. Neither tastyworks nor any of its affiliated companies is responsible for the privacy practices of Rockwell Trading Services, LLC or this website. tastyworks does not warrant the accuracy or content of the products or services offered by Rockwell Trading Services, LLC or this website. Rockwell Trading Services, LLC is independent and is not an affiliate of tastyworks.
