Should you buy Robinhood stock?
It's called "slippage". There is a difference between what you expect to pay ($3.13) and what you actually paid ($3.26) because of the time delay between when you enter the trade and when the broker receives the order. The stock you're trading also makes a difference. The lower the liquidity the greater the slippage.
How does Robinhood make money?
· A 77% move in a few days is massive for a stock with an already large market cap of $52 billion. That's a price-to-sales ratio of about 52, based on Robinhood's 2020 revenue of …
How accurate is Robinhood?
· When the price rises on Robinhood it's rising on the others, seems to not be a time delay. There are no other stocks I'm not accounting for. But what's very weird is that one of the stocks is at 18.35 on in all other places, but on Robinhood it's 18.07... this is for after-market hours at 10:26 pm on a Wednesday.
Why is the price of IPDN on Robinhood different from other platforms?
· On Aug. 3, ARK Invest’s Wood bought 89,622 shares of Robinhood in the ARK Fintech Innovation ETF—a stake worth around $4.2 million based on the last closing price of $46.80. This position is ...
Why are stock prices different on Robinhood?
Robinhood doesn't charge commission fees. Any price difference you may see between the estimated buy/sell price and the execution price is due to market movement.
Why does Robinhood sell higher?
Waves of young investors are surging to Robinhood, one of the fastest growing brokerage firms in history, due to its simplicity, sleek user interface, and zero commission fees. But with Robinhood's ease of use and low barriers for entry comes a lack of understanding of what happens “under the hood”.
Does Robinhood sell for higher price?
It's usually best to choose an order type based on your investment goals and objectives. With a sell limit order, a stock is sold at your limit price or higher. Your limit price should be the minimum price you want to receive per share.
Is Robinhood accurate?
Investment accounts with Robinhood are covered beyond just standard Securities Investor Protection Corporation (SIPC) coverage. Robinhood offers "excess of SIPC" coverage up to $1.5 million for cash and $10 million for securities per brokerage customer, after SIPC coverage is exhausted.
Do you pay taxes on Robinhood gains?
In short, yes. Any dividends you receive from your Robinhood stocks, or profits you make from selling stocks on the app, will need to be reported on your individual income tax return. If you make a profit from the sale of securities, the tax rate will depend on how long you held the stock.
Do I pay taxes on Robinhood?
Robinhood Crypto Taxes Explained That means it's taxed in much the same way as stock. There are no tax consequences when you purchase crypto or transfer it between online wallets established in your name. You must, however, pay income tax on any profits you make when you sell your crypto.
Why can't I withdraw my money from Robinhood?
Remember that the Robinhood withdrawal limit is set at $50,000 or five withdrawal transactions each day. If you try to make more withdrawals than this, you may see an error when you try to withdraw your funds. Robinhood also requires the money in your account to settle before it can be withdrawn.
Can Robinhood liquidate my shares?
Buying shares 'on margin' means using funds lent from the broker, and it is not unusual for brokers to automatically liquidate such shares if an account falls below minimum balance requirements. On Robinhood, users need an account balance of at least $2,000 to trade on margin.
Does Robinhood sell first in first out?
Robinhood uses the “First In, First Out” method. This means that your longest-held shares are recorded as having been sold first when you execute a sell order. The shares themselves are not specifically tracked, but the cost associated with those shares is expensed first.
Does Robinhood steal your money?
YES–Robinhood is absolutely safe. Your funds on Robinhood are protected up to $500,000 for securities and $250,000 for cash claims because they are a member of the SIPC. Furthermore, Robinhood is a securities brokerage and as such, securities brokerages are regulated by the Securities and Exchange Commission (SEC).
What is the catch with Robinhood?
What is the catch with Robinhood? Unlike most online stock brokers, Robinhood does not offer trading of mutual funds; only stocks, ETFs, and crypto, are supported. And while Robinhood does offer commission-free trading, it earns money from your business in a number of ways.
What is wrong with Robinhood?
Between 2018 and 2020, for example, Robinhood failed to report tens of thousands of customer complaints to FINRA that it was required to report, the organization says. FINRA also alleges that Robinhood has “negligently communicated false and misleading information” at different times since September 2016.
What happened
Shares of Robinhood Markets ( NASDAQ:HOOD) have been on a tear since its initial public offering (IPO) offering on July 29, and the recent interest of ARK CEO Cathie Wood has sent the stock surging this week.
So what
Cathie Wood's ARK ETF has delivered annualized returns of 34% since its inception in 2014, so anything that shows up among her holdings is going to cause a stir in the markets.
Now what
Investors shouldn't buy Robinhood stock expecting to get rich quick. A 77% move in a few days is massive for a stock with an already large market cap of $52 billion. That's a price-to-sales ratio of about 52, based on Robinhood's 2020 revenue of $959 million.
Why HOOD stock is going up
It isn't clear what drove the stock higher on Aug. 4. However, the attention of popular investor Cathie Wood tends to favor growth stocks. On Aug. 3, ARK Invest’s Wood bought 89,622 shares of Robinhood in the ARK Fintech Innovation ETF—a stake worth around $4.2 million based on the last closing price of $46.80.
How high will HOOD stock go?
It’s difficult to predict how high HOOD stock could go in the near term since the share price is impacted by investor sentiments. Among brokerages, HOOD’s highest target price is $151.20.
Is it too late to buy Robinhood stock now?
Robinhood posted revenues of $958.8 million in 2020, which represents a growth of 245 percent YoY. Based on the $50 billion market cap, this implies a 2020 price-to-sales multiple of 52.1x. Considering that Charles Schwab and Goldman Sachs are trading at 2021 price-to-sales multiples of 7.1x and 2.5x, respectively, Robinhood stock looks overvalued.
Leveraged ETFs like SPXL or TQQQ, why not?
I’ve read over and over about how not to invest in leveraged ETFs for the long term and I understand that if the ETF is based on a volatile benchmark, it’s gains and losses will be exaggerated compared to that benchmark. I also understand they may not always hit their 2x or 3x goal or whatever it is and have higher expense ratios.
Does breakeven point matter for options?
i got a option that expires in two weeks, break even point was abt 10 percent more (this was a call) but i made a hefty amount of profit when it only went 5 percent up?
Hey folks newb options question
I have no options experience, I appreciate if someone would take the time to answer a dumb question.
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Can I go into debt from buying options (calls)?
I bought some calls and now I am wondering if it is possible to go into debt. I've read in some places that I have no obligation to exercise my calls, but then I see people going into debt, and now I am worried. Can I go into debt, or is the worst-case scenario I simply lose all my money but nothing more?
Tesla wash sale without re-buying tesla stock
I last sold 0.4 shares of tesla on 3rd Sept on a loss (via FIFO rule). I got the document showing my sells and wash sells, and it shows that closing the above position resulted in a wash same, however I didn't purchase TESLA after 3rd Sept yet. How is that possible?
Anyone with TD Bank shares yet to receive their dividend?
So apparently TD Bank had a payment date of July 31st for their most recent dividend. However, I haven't received the dividend as of today (August 3rd). Normally I never get notification in the app that I have received the dividend until the payment date (like I never had TD's dividend listed under pending in the app.
Does trading crypto on RH count towards pattern day trading status?
I know if I have less than 25k and trade stocks on RH too much, I'll get labeled as a pattern day trader. But what if I only trade crypto on RH? Do the same trading limits still apply?
I hope this isn't the dumbest question to ever be asked on here but here goes nothin
Anyone willing to answer? Say you bought a stock for $20 when it was low but now its doubled to $40. Would buying another stock at $40 raise your average cost up?!
