Share Prices & Company Research

Market News

28 Jan 2021 | 15:14

Interactive Brokers and Robinhood raise margin requirements for trading in GameStop

(Sharecast News) - Two large online trading platforms moved to limit trading in shares of GameStop and other companies that had been caught up in the recent 'melt-up' in their share prices. By raising margin requirements for trading in those securities they were implicitly also protecting themselves.

In remarks to CNBC, Interactive Brokers said that as of midday on 27 January, it had put trading in options on AMC Entertainment, Blackberry, Express, GameStop and Koss Corp."into liquidation only due to the extraordinary volatility in the markets."

Interactive also raised margin requirements on long stock positions to 100% and that for short positions to 300% "until further notice".

"We do not believe this situation will subside until the exchanges and regulators halt or put certain symbols into liquidation only. We will continue to monitor market conditions and may add or remove symbols as may be warranted," the broker added.

For its part, Robinhood said it too had moved to restrict transactions for the above securities, as well as for Bed,Bath and Beyond, Naked Group, and Nokia, among others.

Robinhood also raised margin requirements for certain securities.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 14th May 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.