Traders are using a glitch in Robinhood’s app to trade with an infinite supply of borrowed cash, and one user set a new record after turning a $3,000 deposit into a $1.7 million stake.
Call_Warrior, a member of the WallStreetBets subreddit, posted screenshots Tuesday night showing him use the glitch to buy 47,600 shares of Advanced Micro Devices. His post has since been deleted.
The trade involves a glitch that adds the value of sold call options as buying power for users. There seems to be no limit to how many times the trade can be executed.
Robinhood is “aware of the isolated situations and communicating directly with customers,” spokesperson Lavinia Chirico said in a Tuesday email.
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Traders are one-upping each other with a glitch in Robinhood’s trading app, and one user now holds the crown after turning a $3,000 deposit into a $1.7 million position.
A member of the WallStreetBets sub-reddit named Call_Warrior posted about his use of the trading glitch Tuesday night, detailing how he leveraged his deposit to hold more than $1.7 million worth of Advanced Micro Devices stock. The post has since been deleted, but screenshots show him using the app …read more
Source:: Businessinsider – Finance