Robinhood will increase the buying and selling restrict for GameStop shares from 1 to 4
The logo of the trading app Robinhood is displayed on a smartphone.
Olivier Douliery | AFP via Getty Images
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Robinhood began easing trading restrictions on Monday and increasing the trading limit on GameStop from one share to four shares.
The broker also raised the limits on AMC Entertainment, Express, and some of the other eight restricted stocks. Here are the new restrictions.
Robinhood restricts trading in certain stocks
Given the increased capital requirements from the SEC and the Depository Trust & Clearing Corporation, Robinhood last week restricted certain stocks and options in a frenzied investment frenzy in greatly truncated names. Reddit-obsessed traders pushed GameStop stock more than 400% to destroy the hedge fund’s short position.
GameStop shares recently fell 17% after losing more than a third of their value.
The restricted list tells clients how many stock and options contracts they can buy on a particular security, and Robinhood appears to be pulling back some of its restrictions. Now Robinhood customers can buy 4 stocks instead of just one. Customers can buy 75 shares of AMC, more than the previous 10-share limit.
Robinhood customers can now purchase 200 Express shares instead of the previous limit of 20 shares. However, if a customer owns more than 200 Express shares, they will no longer be able to buy shares in the competitive retailer.