The controversial stock trading platform Robinhood is denying accusations that it forced users to sell shares of GameStop this week – unless those shares were bought using borrowed funds.
‘Claims that Robinhood proactively sold customers’ shares outside of our standard margin-related sellouts or options assignment procedures are false,’ a Robinhood spokesperson told DailyMail.com on Saturday.
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.
The statement sheds some new light on the surreal events of the week, in which GameStop shares surged as part of a campaign…