Robinhood remains to be severely proscribing commerce. Prospects can solely purchase one share of GameStop
The restrictions on Robinhood traders tightened as the day wore on Friday so customers could only buy a single share of GameStop.
The stock trading app also expanded its list of restricted stocks from 13 earlier in the day to 50.
“The following table shows the maximum number of stock and options contracts that you can add to your position,” wrote Robinhood. CNBC has rebuilt the table.
The restricted list tells customers how many stock and options contracts they can buy for a particular security. Robinhood customers can only buy one share and up to five options contracts of GameStop. However, if a customer already owns one or more shares in GameStop, they cannot buy any more shares.
Robinhood’s restrictions could take the wind to point-and-click merchants trying to raise the price of GameStop. However, Robinhood will not sell any GameStop customer shares that are already above the one-share limit of a previous position.
The stock, which closed 67%, was off its session highs when the new stricter limits were put in place. Earlier in the day, customers could buy five GameStop shares.
Most of the stocks customers could buy from any of the 50 stocks were five. Customers with no existing shares can only buy one share and 10 options contracts from AMC Entertainment, a decrease from 115 previous shares. AMC Entertainment’s shares were up 53% but were also well below their daily highs. Customers can only buy one share of American Airlines, Bed Bath & Beyond, and Koss.
The stock trading app has also expanded its list of restricted stocks. Some of the new names include Advanced Micro Devices, Starbucks, Novavax, General Motors, and Beyond Meat.
On Thursday, Robinhood told its customers that it was only allowed to sell stocks of certain securities, not buy new ones that had caught the attention of the Reddit masses on social media. The company also increased the margin requirements, or the amount of money on a client’s account, when using leverage to purchase a security. Robinhood’s decision met with outrage and many users posted their complaints on Twitter.
Robinhood said the trading restrictions were risk management decisions aimed at protecting Robinhood and its clearinghouses, but indicated that the restrictions would be relaxed Friday.
The free trade pioneer raised $ 1 billion in investor money and used more credit lines overnight to allow its customers to trade names like GameStop and AMC Entertainment on Friday.
However, the restrictions tightened as the trading day progressed as the list of limited stocks grew and the number of stocks customers could buy for certain stocks shrank.
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