> As I understand it, Robinhood had a cash problem because of the various collaterals required for high-risk securities during the clearing process. When each share traded needs a high amount of collateral (1:1, even), and you have a high number of those trades happening, you might not have the cash to pony up.
Something like that. But note that it isn't related to margin trading - Robinhood has to post their own cash as collateral with NSCC/DTCC, they can't use their customers' cash. So if a customer wanted to opt out of the margin account this wouldn't actually help.
(I don't know what this rule is for, but it's in the rules.)
Something like that. But note that it isn't related to margin trading - Robinhood has to post their own cash as collateral with NSCC/DTCC, they can't use their customers' cash. So if a customer wanted to opt out of the margin account this wouldn't actually help.
(I don't know what this rule is for, but it's in the rules.)