Quote:
Originally Posted by DoubleK
So Robinhood ran out of cash to pay clearinghouse deposits? Are they that poorly capitalized?
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The way clearinghouse deposits are calculated having a big chunk of your trades on one side of a very volatile stock could make the deposits increase by multiple orders of magnitude.
Thats a liquidity issue, not a solvency one though. And it doesn't explain why other brokers (who are less exposed on the deposit issue) did the same thing.