The price reduction brokerage informed customers they could shut out positions in the afflicted shares but could not invest in supplemental shares. Companies affected by the limitations are GameStop, AMC, BlackBerry, Mattress Bath & Beyond, Convey, Koss, Bare Model, and Nokia.
Robinhood also lifted margin demands for particular trades. The transfer arrived Thursday in advance of marketplaces opened.
“We consistently watch the marketplaces and make variations in which necessary,” the company claimed in a push launch.
The stocks that have been eradicated have all surged in recent classes as day traders united in Reddit forums like r/wallstreetbets and frenetically acquired the names to press their share selling prices bigger. The phenomenon has previously fueled huge losses for numerous hedge cash and caught the notice of regulators and the White House.
Robinhood’s shift followed identical freezes imposed by Charles Schwab and TD Ameritrade on Wednesday. Extraordinary investing volumes also prompted provider disruptions throughout several brokerages as investors rushed to the greatly shorted stocks.
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