Trading platform Robinhood warned day traders on Thursday night to raise their cash buffers on "several widely-held stocks" hours before market open, or they could face an account deficit.
"If you hold any of the affected stocks on margin, your buying power may decrease or your account may be in a deficit after these changes go into effect," Robinhood said. The company, which has spearheaded commission-free stock and ETF trading, said it would increase the margin maintenance requirements for those stocks affected by election volatility. It maintains the move would help protect customers from increased election volatility.even saying "I'm not sure how this could be legal."
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