The US Stock Trading app Robinhood has after more than one week all in the meantime valid trade restrictions and thus counteracts the continuous loss of value of the Gamestop share. After an unprecedented course rally of the securities of the criteral game handler, Robinhood had prohibited the purchase of the shares of Gamestop and some other companies last Thursday and was thus criticized.
Small investor VS. Hedge fund
Background of the restrictions was a force measuring between empty sale ("Shortseller") And above all, but not just small investors. Empty sellers borrow shares for a certain period of time, sell them immediately at the daily rate and rely on the papers for falling courses to shop for and backwards when the lending ends. Real-selling hedge funds had set rough sums to a falling course of the Gamestop share.
Small investors who organize themselves on Reddit, however, by massive buying the course of the Gamestop share in the high drives and thus crossing the tarpaulin of empty sale. The short sellers were forced to buy their fally Gamestop shares to the high courses and drove rough losses. The billions-heavy hedge funds Melvin Capital was therefore shortly before the insufficiency.
But Robinhood and similar apps had broken down trading with the stock and interrupted the price increase. Robinhood had the step with one "ongoing market volatite" greeted. Other brokers, such as the German start-up Trade Republic, had abandoned the restrictions but sooner again.
Small investors had bounced out on their profit line, followed by severe premieges. They suspect that the trading platforms wanted to leave the hedge fund to the jerking. Robinhood and Co. argue this: Due to the immensely grown trading activity, the risk has existed that financial hedges were no longer enough. But the emport was roughly roughly at the investor community, but also in politics. In the US, investigations of the forecasts are already being explored.