Problematic trading app Robinhood has narrowed the list of restricted stocks on the platform, but still imposes severe restrictions on GameStop’s stock.
According to the website, Robinhood has reduced the list of restrictions to eight different stocks, including GameStop, AMC, BlackBerry, Express, Genius Brands International, Koss, Naked Brand Group, and Nokia. CNBC reported that 50 Robinhood shares could be traded earlier Friday.
Under the new restrictions, Robinhood users can still purchase a stake in GameStop with only five option contracts. AMC trading is limited to 10 stocks and 10 options contracts.
The company stated that Robinhood users who already own multiple shares or contracts must sell their assets in order to open more positions:
“If you already have more shares or contracts than indicated above, your positions will not be sold or closed. However, you will not be able to open more positions for each of these securities unless you sell enough of your assets to be below the limit. meaning. ”
Robinhood is struggling to maintain its commercial services while the Reddit r / Wallstreetbet community is pumping stocks like GME to consistent highs. Robinhood stopped buying GME Thursday after the stock rose 1400% from around $ 20 on January 12. The company also suspended temporary spot deposits for buying cryptocurrency on Friday, citing “abnormal market conditions.”
The US Securities and Exchange Commission later suggested it was reviewing the Robinhood platform, citing “extreme volatility in trading prices for some stocks.”
Robinhood’s decision to stop trading GME was widely criticized in the trading community, with at least 100,000 negative reviews posted on Robinhood’s Google Play Store page. Despite Google’s subsequent move to cancel thousands of negative reviews through its “false comment” tracking system, the Robinhood app still has a star rating, with 294,954 reviews posted at time of publication.
In the midst of ongoing troubles, Robinhood users launched the hashtag “#robinhoodboycott” on Twitter, urging traders to remove their assets from the platform. However, Robinhood isn’t the only company struggling with GameStop’s short squeeze. Online trading platform IG Group Holdings said on Saturday that it would restrict any new positions in GME and AMC due to “extreme volatility” in the market.