Traders using Robinhood found a way to manipulate the platform to borrow unlimited funds to purchase stocks.
Robinhood, the mobile trading app that has more than 6 million users, is contending with a glitch in its platform that enables some traders to use unlimited borrowed money to purchase stocks. earlier this week to brag about the funds they were able to borrow despite the low amounts of cash in their accounts.
and screenshots showing how they were able to manipulate the platform including providing directions. , the glitch enables traders to inflate their account balances when borrowing money on margin. A common practice among traders, traders borrow money from the brokerage to purchase stocks. The firm, in this case Robinhood and its banking partner, acts as the lender issuing the money based on account balances, creditworthiness, and other criteria.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Robinhood glitch is letting users trade with unlimited amounts of borrowed cashA glitch in the stock-trading app Robinhood is allowing investors to trade with apparently unlimited amounts of borrowed money.
Read more »
Robinhood traders discovered a glitch that gave them ‘infinite leverage’A glitch in the Robinhood Markets Inc. system is allowing users to trade stocks with excess borrowed funds, giving them access to what amounts to free money.
Read more »
'Infinite leverage' — some Robinhood users have been trading with unlimited borrowed moneySome Robinhood users have been manipulating the stock-trading app to trade with what they're calling 'infinite leverage.'
Read more »
Risk rally hits pause button as markets await trade signalsGlobal stock markets steadied after a three-day rally on Wednesday as traders co...
Read more »
AT&T resolves FTC allegations for $60 million after complaints of data 'throttling'AT&T settles Federal Trade Commission's complaint that it misled customers with unlimited data plans by slowing speeds with a $60 million fund.
Read more »
This industrial stock could be the best way to ride sector surge, trader saysIndustrial stocks are outperforming this month, and one name could be the best bet to ride the wave, Todd Gordon of TradingAnalysis.com says.
Read more »