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Robinhood said it would re-enable trading in GameStop and others on Friday, but with certain restrictions

Robinhood, Webull, TD Ameritrade have lifted bans on activity after stopping customers buying shares such as GameStop and AMC on Thursday in response to a Reddit-driven frenzy.

Some platforms said their clearing systems could not withstand the huge volatility, while others cited a desire to prevent customers losing money.

The moves infuriated day traders and helped send the GameStop, or GME, price tumbling 44.29% to $193.60 at the close.

Here’s what Robinhood, Webull, M1, E-Trade, Trading 212 and others were saying on Friday morning, as of 10am ET.

Robinhood

Day-trader favorite Robinhood said that it will restrict the number of purchases users can make of certain popular stocks on Friday.

For example, it said in a statement that users will only be able to increase the number of GameStop shares they hold to 5 and options contracts to 10. AMC shares will be limited to 115 and options contracts to 100.

Robinhood on Thursday disabled trading in stocks such as GameStop, AMC and Nokia, allowing users to close out positions only.

The app said it would “make adjustments as needed” on Friday.

Webull

Webull said on Thursday afternoon that GME, AMC and KOSS “are no longer restricted”. That cleared the way for trading to resume on Friday.

The no-commission platform on Thursday stopped purchases of GameStop, cinema chain AMC and headphone-maker Koss Corporation “due to extreme volatility” and pressure on its clearing firm.

Read More: A chief investment strategist breaks down how the GameStop saga could upend long-standing practices on Wall Street – and shares her 4-part advice for navigating the frenzied trading environment

M1 Finance

M1 said on Thursday that its clearing system had given it the green light for trading to resume through its app. “Trades will go through at our window normally,” it said on Thursday evening.

The trading platform had stopped trading in GME, AMC and KOSS, saying its clearing firm Apex Clearing had forced its hand.

Public

Public, which also uses Apex as its clearing firm, said on Thursday that users would be able to buy GameStop, AMC and Koss shares.

E-Trade

E-Trade has resumed all trading, as it said it expected to on Thursday in a statement to The Verge.

The popular platform stopped customers from buying shares in GameStop and AMC on Thursday, according to media reports and traders posting on social media.

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Wall Street Bets users have driven up the GameStop stock price

Interactive Brokers

Interactive Traders has stopped the purchase of options on GameStop, AMC, Koss, BlackBerry and others, but stocks can still trade.

On Thursday night it tweeted a statement saying it “will continue to monitor market conditions and may add or remove symbols as may be warranted”.

Read More: MORGAN STANLEY: Buy these 17 stocks with strong earnings that are expected to outperform into 2022 even if the broader market sinks

TD Ameritrade

TD Ameritrade has placed some restrictions on stocks such as GameStop, AMC, Bed Bath & Beyond, and BlackBerry for Friday. 

Traders are still allowed to freely make basic buy and sell transactions, as well as long calls and puts.

But all covered call and short put trades may only be placed with a broker. And investors cannot borrow against the restricted stocks to buy more shares. All the details can be found here.

TD said it “may also implement additional restrictions on the opening of option trades that expire Friday, January 29”.

Charles Schwab

Charles Schwab is part of the same company as TD Ameritrade, and it said the same restrictions apply.

Trading 212

Trading 212 on Friday enabled the trading of GameStop and AMC again. But it warned about “the high risk of long execution disruptions for both BUY and SELL orders caused by the extreme market activity”.

Trading 212 – which is very popular with UK day traders – had curbed trading on Thursday.

Read More: As Redditors flood the stock market, UBS breaks down 6 options strategies investors can use right now to protect their portfolios

Freetrade

Freetrade said on Friday that it has had to disable all buy orders on US stocks. It said “a sudden and unexpected decision by our FX provider, and their bank, to limit our volume of trades” was to blame.

eToro

eToro said on Friday that it had re-enabled trading in GME, after its liquidity provider gave it the green light. Yet it warned that market conditions meant it “may need to introduce restrictions to GME and other stocks at very short or no notice”.

eToro had curbed trading of GameStop on Thursday, telling users they could only sell or hold the stock.

Revolut

Trading on Revolut resumed as normal on Friday, although the company continues to monitor the situation.

Read the original article on Business Insider

source https://www.businessinsider.com/robinhood-webull-m1-reopen-gamestop-stock-trading-2021-1