"We recently identified a small number of accounts engaging in problematic trading activity on our platform," Robinhood spokesperson Lavinia Chirico said in an emailed statement. "We've quickly restricted these accounts, and made a permanent update to our systems intended to prevent anyone from engaging in this pattern of trades."
The typically unauthorized trade involves Robinhood Gold users selling call options with money borrowed through the platform. The app then incorrectly added the value of the sold options to users' buying power, allowing them to repeat the trade with increased capital. Traders then repeated this cycle, with no clear limit to how much the glitch could be exploited.
A member of the WallStreetBets sub-reddit discovered the hack in late October, using a $2,000 deposit to trade $50,000 worth of Apple put options. The trader lost $48,000 when his options expired worthless, and a video of his reaction grew massively popular among WallStreetBets members.
Rats ☺️
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
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.
Source: latimes - 🏆 11. / 82 Read more »
How much Reddit users have amassed from Robinhood 'infinite money' bug - Business InsiderA stock-trading Reddit forum has minted a group of hall-of-famers who best exploited Robinhood's 'infinite leverage' glitch. Here's how much money each has amassed through the hack. What is the drug trade looking like? justinlewis1125 time to up your game guy
Source: BusinessInsider - 🏆 729. / 51 Read more »
Robinhood Glitch Lets Traders Borrow Unlimited Funds To Buy StocksTraders using Robinhood found a way to manipulate the platform to borrow unlimited funds to purchase stocks. Wow :D
Source: Forbes - 🏆 394. / 53 Read more »
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. Lol omg, this could be so dangerous F1DDL3R unlimited money 💰
Source: MarketWatch - 🏆 3. / 97 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.' 🤨 BagholderQuotes what say ye? Do you feel LUCKY?
Source: CNBC - 🏆 12. / 72 Read more »
The Redditors who made millions on a Robinhood glitch are 'psychopaths,' says Ritholtz CEO Josh Brown“These kids are out of their minds. They’re looking for ways to take reckless risks, and arguably they’re doing it to impress their friends on a chat... So, he's angry that a bunch of Redditors played the game better than him with less money needed to start? The graceful art of finesse
Source: BusinessInsider - 🏆 729. / 51 Read more »