Here’s how Robinhood (and short selling GameStop) actually work
Two things you need to know about the situation with GameStop, WallStreetBets and that whole mess today: First, retail traders aren’t actually the customers at Robinhood, the stock-trading app that many of those retail traders are mad at. Second, while the potential losses of retail stock buyers max out at 100%, if a hedge fund is selling short, as they often do, the losses can be infinite. We’ll fill you in on what you need to know — or you could just watch this.
Here’s everything we talked about today:
- “WeWork in Talks to Combine With SPAC or Raise Money Privately” from The Wall Street Journal
- “Robinhood’s Customers Are Hedge Funds Like Citadel, Its Users Are the Product” from Vice
- And, one more time, this “stonks” explainer
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