Robinhood to continue trading limits on Monday, customers can still only buy one GameStop share

Robinhood will continue to restrict trading on Monday in short-squeeze names like GameStop which have skilled explosive rallies and unprecedented volatility over the previous week.

Customers can only buy one share of GameStop’s inventory and 5 choices contracts. However, the millennial-favored inventory trading app did lower down its record of restricted shares from as many as 50 on Friday to eight beginning Monday.

“The table below shows the maximum number of shares and options contracts to which you can increase your positions,” Robinbood stated in a up to date assist heart message Sunday. “These limits may be subject to change throughout the day.”

The eight names are GameStop, AMC Entertainment, BlackBerry, Koss, Express, Nokia, Genius Brands International and Naked Brand Group. Robinhood can be limiting shopping for of choices contracts in these securities.

If merchants already maintain extra shares or contracts than the limits listed above, their positions is not going to be bought or closed, however they will be unable to open new positions, Robinhood stated.

The transfer to prolong restrictions got here after Robinhood revealed that the central Wall Street clearinghouse mandated a ten-fold increase within the agency’s deposit necessities final week to guarantee orderly settlements. Clearinghouses search to shield buyers and the markets by ensuring that brokerages have the funds wanted for commerce settlement, a course of that takes two days.

The agency additionally raised margin necessities, or the amount of cash in a consumer’s account when they are going to be utilizing leverage to buy a safety.

The common trading platform tapped credit score traces and raised $1 billion new funds from buyers to meet the clearinghouse necessities final week.

A speculative shopping for frenzy swept Wall Street final week as a brand new wave of stay-at-home merchants continue to use social media, on this case Reddit’s WallStreetBets discussion board, to coordinate large brief squeezes. Shares of GameStop, a struggling brick-and-mortar online game retailer, skyrocketed 400% prior to now week, closing out January with a 1,625% rally. AMC soared 277% final week, whereas Koss ripped greater than 1,800% larger.

Many on Wall Street grew more and more apprehensive that this retail mania will trigger extra ache for brokers like Robinhood and the brief squeezes will pressure massive hedge funds to promote different positions to elevate money, creating turmoil within the broader market.

Stock futures were down in early trading Sunday.

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