Here’s how Robinhood (and short selling GameStop) actually work
Jan 28, 2021
Episode 358

Here’s how Robinhood (and short selling GameStop) actually work

We're deep in the weeds on stonks again today. The "Stonk Weeds."

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:

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The team

Marissa Cabrera Senior Producer
Bridget Bodnar Senior Producer
Tony Wagner Digital Producer