It is normal for trading to stop on volatile stocks or markets - as a safety switch. Is it true that RobinHood or any other trading firm can make a trade or sell without your order? I've seen a few posts like this and am hoping it's a falsehood.
It is true if they owe the brokerage money for a "margin call" or a "fed call" which means a phone call that says. You must give us money Now, or we will sell some of your stuff. And if the client doesn't come up with the money. The brokerage takes the money. To cover the agreeable House margin Call to bring it back to normal levels. Of leverage. So they can either deposit cash. Or sell other securities to free up cash. Easier said than done.
Thank you - I got a good education on this watching CNBC and Bartiromo yesterday and you just 100% confirmed what they reported. Appreciate you taking the time to clarify!
It is normal for trading to stop on volatile stocks or markets - as a safety switch. Is it true that RobinHood or any other trading firm can make a trade or sell without your order? I've seen a few posts like this and am hoping it's a falsehood.
It is true if they owe the brokerage money for a "margin call" or a "fed call" which means a phone call that says. You must give us money Now, or we will sell some of your stuff. And if the client doesn't come up with the money. The brokerage takes the money. To cover the agreeable House margin Call to bring it back to normal levels. Of leverage. So they can either deposit cash. Or sell other securities to free up cash. Easier said than done.
Thank you - I got a good education on this watching CNBC and Bartiromo yesterday and you just 100% confirmed what they reported. Appreciate you taking the time to clarify!