Robinhood Traders Discovered a Glitch That Gave Them ‘Infinite Leverage’
One trader bragged about a $1 million position funded by a $4,000 deposit.
It's always interesting watching the intersection of startups moving quickly/trying to disrupt markets, and industries that are tightly regulated for a good reason.
"Dubbed the “infinite money cheat code” by users of Reddit Inc.’s WallStreetBets forum, the bug is being exploited, according to users on the forum. One trader bragged about a $1 million position funded by a $4,000 deposit."
"One trader managed to turn his $2,000 deposit into $50,000 worth of purchasing power, which he used to buy Apple Inc. puts. He subsequently lost that money and posted a video of the wipe-out on YouTube."
I wonder who the SEC will go after. The traders, Robinhood, or both?Posted on 2019-11-05T19:08:37+0000