A spread can still expire worthless. This thread is archived.

Probably because it's the minor league of brokers. Robinhood, an investing app, saw record trades in June. Do you ever think we will have this functionality? Why can't we short stocks on Robinhood? They should do peer to peer shorts. Press question mark to learn the rest of the keyboard shortcuts. The attraction of robin hood is free trades. Why doesn’t RobinHood allow short selling yet? I'd like that on RH, too. Overview of Hidden Fees at Robinhood If you’re concerned about the pricing schedule at Robinhood and what trading there will cost you, read on. By using our Services or clicking I agree, you agree to our use of cookies. Yes, I believe they have said multiple times that it will be coming eventually. Since it’s an ETF, you can’t micromanage your holdings.

Being a noob like you said do you think it's a good idea to be able to short stocks? MEOW is currently trading at $5 per share.

However, you can never eliminate market and investment risks entirely. The 3-minute newsletter with fresh takes on the financial news you need to start your day. Thats about it. Why can't we short stocks on Robinhood? I'm a noob of just a few months. Robinhood Financial is a member of the, Financial Industry Regulatory Authority (FINRA).

50% Upvoted. If there aren’t enough shares in the market at your limit price, it may take multiple trades to fill the entire order, or the order may not be filled at all.

If the stock falls to your stop price, it triggers a sell limit order. A stop limit order combines the features of a stop order and a limit order. Spreads mitigate IV, too, like theta ... but IV is still an important consideration. It’s usually best to choose an order type based on your investment goals and objectives. You also don’t want to receive less than $8.05 per share of MEOW, so you set a limit price at $8.05. (2) Implied Volatility. You want to wait to purchase MEOW because you think it’ll fall to a lower price.

New comments cannot be posted and votes cannot be cast. Yes, I believe they have said multiple times that it will be coming eventually. Plus, robinhooders trade without commission fees and generally low capital. I saw them respond to people on Twitter about this. Buying put options is significantly better. The only way they can provide that is to keep their cost low.

Do you ever think we will have this functionality? First off to be able to short a stock you need a margin account. New comments cannot be posted and votes cannot be cast, Press J to jump to the feed.

So if you think a sector is tanking you can grab an inverse sector etf as an example, New comments cannot be posted and votes cannot be cast, Press J to jump to the feed. I would lend my shares to someone, and it just so happens that if you short anything in my portfolio you would have made money today/this year. Then, MEOW is purchased if shares are available at $7.95 or lower. Robinhood means Robinhood Markets and its in-application and web experiences with its family of wholly owned subsidiaries which includes Robinhood Financial, Robinhood Securities, and Robinhood Crypto. These funds are built on shorts, so they go up when the underlying index goes down. Because of theta and IV, a stock can move in your direction and you can still lose money. They haven't built the functionality yet. 4 Easy Ways to Go Broke Trading on Robinhood Robinhood users are notorious for their risky investment moves. You also think that if MEOW reaches $8 it may go higher. Cookies help us deliver our Services. Shares will only be purchased at your limit price or lower. Also, once your stop order becomes a limit order, there has to be a buyer and seller on both sides of the trade for the limit order to execute. Shares will only be sold at your limit price or higher. Speculative short term investing primearily. Cost of the broker app investment account. If a stock is starting to waterfall, IV will spike and puts will become much more expensive. Keep in mind, short-term market fluctuations may prevent your order from being executed, or cause the order to trigger at an unfavorable price. (3) With other brokers, sometimes a security is not optionable, but it is shortable. Robinhood brokerage hidden fees. Your broker doesn't hold/own the shares that you sell short. Investors often use stop limit orders in an attempt to limit a loss or protect a profit, in case the stock moves in the wrong direction. For example, if the market jumps between the stop price and the limit price, the stop will be triggered, but the limit order will not be executed. share.

That's not how shorting works. To help protect yourself in case MEOW reverses itself and begins falling, you set a stop price at $8. Shorting on Robinhood Summary In short (no pun intended), the most direct way to short a specific stock is by selling it short, which you can’t currently do on the Robinhood platform.

However, it’s a viable alternative to selling short. All investments involve risk and loss of capital. I don't think the benefit of adding short selling would out way the costs. Robinhood does support buying put options, which is another, more multi-dimensional, way to short a specific stock. A stop limit order combines the features of a stop order and a limit order.When the stock hits a stop price that you set, it triggers a limit order. Options (generally, and almost always) have drastically less liquidity, trade with less volume, and have much wider spreads. Do you even understand the implications they can have? save hide report. If MEOW rises to $8 or higher, your buy stop limit order becomes a buy limit order.

Pattern Day Trade Protection will consider all the orders you’ve placed–not only orders that’ve executed.For example, if you’ve purchased a stock and then set a sell limit order on that same stock in the same day, Pattern Day Trade Protection will count that order as a day trade, regardless of whether or not it gets executed. MEOW is currently trading at $10 per share. The day Robinhood introduces shorting is the day I sell all of my stocks in Robinhood and buy them back a year or two later. The amount Robinhood would make off shorting is unlikely to be worth the cost of implementation and management. You want to wait to sell MEOW because you think it’ll rise to a higher price. You also don’t want to pay more than $7.95 for MEOW, so you set a limit price at $7.95.

These examples are shown for illustrative purposes only. Avoid these four things if you don't want to blow your money.

If MEOW stays below $8, a buy limit order isn’t triggered and no shares are purchased. I for one think Robinhood will not offer short selling for a long time if ever. If MEOW stays above $8, a limit order isn’t triggered, and you keep your shares. ... and it just so happens that if you short anything in my portfolio you … Also I see Robinhood as a broker who a lot of new traders go to for starting out because of the free transaction cost.

All this would add a lot of work for Robinhood to manage these transactions leading to costs. They haven't built the functionality yet. I was asking for a friend. But the reasons why I would also like to short in RH, in addition to trading options ... (1) Theta is never reduced completely with spreads, so theta is still one valid reason. Second the short seller is responsible for paying dividends on the stock they are shorting. Check the background of the firm on FINRA’s BrokerCheck, Securities trading is offered to self-directed customers by Robinhood Financial. When the stock hits a stop price that you set, it triggers a limit order.

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