Media used to be required to give different viewpoints a voice and entitled those criticized a platform to respond.
The new model is profit driven
Look ma, I’m famous! WSJ called me out for no reason in an article defending Robinhood. I don’t even margin trade! 😂 Boomer Wall St is scared and clueless 🤡
When clients trade, especially on margin, they use the broker’s mmoney to play. Imagine a client buys 100 shares of GameStop for $400 a share, using $20,000 of his own money and borrowing $20,000 from Robinhood. If the stock drops from $400 to $120 (as it did on Jan. 29, the clients position may be sold for $12,000 due to the margin violation, leaving Robinhood trying to collect an unsecured $8,000 debt from “u/Thicc_ladies_PM_Me.”
Good luck.. Multiply this by hundreds or thousands of similar clients. Option trading is worse because the leverage is greater.