Traders have been exploiting a glitch in Robinhood’s app to trade with a limitless supply of borrowed cash, and one online forum member compiled a hall-of-fame list for the largest positions created through the bug.
One member of the WallStreetBets sub-reddit discovered the glitch in late October. Several other users subsequently copied the trade, boasting increasingly large sums of borrowed cash on the forum.
Here are the five hall-of-fame members, from the user who first traded with the bug to one member who turned a $3,000 deposit into a $1.7 million position.
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Traders have been using a glitch in Robinhood’s app to trade with an unlimited supply of borrowed cash — and one member of an online forum compiled a hall-of-fame list of the largest positions created through the bug.
A member of the WallStreetBets sub-reddit discovered the glitch in late October after using a $2,000 deposit to trade with $50,000 in buying power. Other forum members glorified the trade before executing similar trades. In a matter of days, users were one-upping each other to see who could amass the most borrowed cash.
The trade involves Robinhood Gold users selling call …read more
Source:: Businessinsider – Finance