Trading information for GameStop is displayed in the Robinhood app, as another screen displays the Robinhood logo in this photo illustration on January 29, 2021.
Brendan McDermid | Reuters
Robinhood on Tuesday turned back a few times beyond its trading restrictions, which now allow customers to buy up to 100 shares of GameStop.
Meanwhile, the share of the brick-and-mortar retailer is holding more than 40% tank, bringing its weekly decline to around 60%.
The brokerage also increased the limits for AMC Entertainment, Express and some of the other five restricted shares. Food, BlackBerry and Genius Brands are no longer limited.
The restricted list tells clients how many shares and option contracts they can buy in relation to a particular security.
Robinhood restricts trading of certain shares
Source: Robinhood
Robinhood customers can now buy 100 shares of GameStop, compared to the previous amount of 20 shares. However, if an investor owns more than 100 shares in GameStop, he cannot buy another share in the stock.
Customers can now buy 1,250 shares of AMC Entertainment, up from 350 earlier on the trading day. Shares of AMC fell 40% on Tuesday.
Robinhood started trading a handful of shares last week amid an increase in the capital requirements of the Depository Trust & Clearing Corporation as a result of the retail investment in big shortened names. Reddit-obsessed retailers have boosted GameStop’s share by more than 400% in an effort to downsize hedge funds.
While the share of GameStop rose, however, regulators increased the amount that Robinhood would have to deposit with its clearing houses if the trade were to cause huge losses.
Robinhood customers can now buy 3,000 shares of Express, compared to the limit of 1,000 shares. Investors can buy up to 12,000 shares of Naked Brand Group compared to the previous limit of 6,500. Nokia’s purchase capitalization is the same with 2,000 shares.