Robinhood eased trading restrictions further on Monday, increasing the trading limit for GameStop to 20 stocks.
The changes from Robinhood are minor. Customers who already own more than 20 GameStop shares cannot buy new shares. On Monday before, Robinhood relaxed the restrictions on one open share of four shares around noon.
The small withdrawal of restrictions comes amid another cash injection for the free stock pioneer.
The broker also raised the limits on AMC Entertainment, Express, Koss, and some of the other eight restricted stocks. Here are the new restrictions.
Robinhood restricts trading in certain stocks
In light of increased capital requirements from the SEC and the Depository Trust & Clearing Corporation, Robinhood restricted certain stocks and options last week in a frenzied investment frenzy on heavily truncated names. Reddit-obsessed traders pushed GameStop stock more than 400% in an attempt to crush the hedge funds that are shorting out the name.
As GameStop’s shares rose, regulators increased the amount Robinhood would need to deposit into its clearing houses in the event that the deals caused large losses. JMP Securities’ estimated needs grew a staggering $ 7.5 billion to $ 33.5 billion.
The restricted list tells customers how many stock and options contracts they can buy for a particular security.
GameStop shares recently fell 20% after previously losing more than a third of their value.
Customers can buy 350 shares of AMC, more than the previous 75-share limit. Robinhood customers can now purchase 1,000 Express shares instead of the previous limit of 200 shares. However, if a customer owns more than 1,000 Express shares, they will not be able to purchase any more shares in the competitive retailer.
Nokia and BlackBerry trading limits remained unchanged.
Robinhood’s policy change is based on news that another $ 2.4 billion has been raised from investors to support record customer growth, the company said in a blog post on Monday. This adds to the $ 1 billion raised last week to prop up Robinhood’s balance sheet in anticipation of rampant speculative trade. The company also used lines of credit for more funds.
The new financing round was led by Ribbit Capital as well as existing investors Iconiq, Andreessen Horowitz, Sequoia, Index Ventures and NEA, Robinhood said.