The Robinhood website’s home screen on a smartphone.
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Restrictions on Robinhood retailers tightened throughout the day on Friday, allowing only customers to buy a single share in GameStop.
The stock trading app also expanded its list of restricted stocks earlier in the day to 13.
“The table below shows the maximum number of shares and option contracts with which you can increase your positions,” Robinhood wrote. CNBC recreated the table.
The restricted list tells clients how many shares and option contracts they can buy in relation to a particular security. Robinhood customers can buy just one share and up to five option contracts from GameStop; however, if a customer already owns one or more of GameStop, he can no longer buy shares.
The restrictions of Robinhood may allow the wind-and-click retailers to increase the price of GameStop. However, Robinhood will not sell any client’s shares in GameStop that are already more than the one-share limit of a previous position.
The stock, which closed at 67%, was of the highest point of the session as the new stricter limits were implemented. Earlier in the day, customers were able to purchase five shares of GameStop.
The most shares customers could buy of one of the 50 shares were five. Customers without existing shares can buy only one share and ten option contracts in AMC Entertainment, which is lower than 115 previous shares. Shares of AMC Entertainment closed up 53%, but also the highest of the day. Customers can only buy one share in American Airlines, Bed Bath & Beyond and Koss.
The stock trading app has also expanded its list of restricted stocks. Some of the new names include Advanced Micro Devices, Starbucks, Novavax, General Motors and Beyond Meat.
Robinhood told clients on Thursday that it is only allowed to sell shares, and not buy new shares, in certain securities that attract the attention of Reddit crowd social media. The firm also increased margin requirements, or the amount of money in a client account when they use leverage to buy a security. Robinhood’s decision is outrageous, and many users are taking their grievances to Twitter.
Robinhood said the trade restrictions were risk management decisions to protect Robinhood and its clean houses, but argued that the restrictions would be eased on Friday.
The free trade pioneer raised $ 1 billion in investor money and tapped more lines of credit overnight for its clients to trade names like GameStop and AMC Entertainment on Friday.
However, the restrictions became more stringent during the trading day as the list of restricted securities grew and the number of shares that customers could buy for certain shares shrank.
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