Robinhood is narrowing down its restricted stock list, but will still impose limits on buying stock from heavily shorted GameStop Corp. and AMC Entertainment Holdings Inc. when the trade opens Monday.
On its website, the online brokerage changed its list of restricted stocks from 50 to eight on Sunday: GameStop GME,
AMC AMC,
BlackBerry Ltd. BB,
Express Inc. EXPR,
Genius Brands International Inc. GNUS,
Koss Corp. KOSS,
Naked Brand Group NAKD,
and Nokia Corp. ENOUGH,
Robinhood’s Limited Supplies.
Robin Hood
According to the limits, Robinhood users can only buy one share of GameStop (and up to five options contracts) and up to 10 AMC (and 10 options contracts).
Keep in mind that this is the case aggregate limits for each security and not per order limits, and including stocks and options contracts you already wait a minute, ”said Robinhood. “These limits are subject to change during the day.”
Read: The biggest losers from the GameStop turmoil? An early list
Robinhood said that for users whose holdings already exceed these numbers, positions will not be sold or closed. “However, you cannot open more positions in each of these securities unless you sell enough of your holdings to be below the respective limit,” Robinhood said.
Last week, Robinhood caused anger – and lawsuits – from some users by restricting trading in some highly volatile stocks that had gone badly short.
Also see: Opinion: Why Regulators Shouldn’t Get Trigger Happy When Trying to Curb GameStop’s Stock Mania
GameStock shares were up more than 400% last week and are up more than 1,600% this year after an attempt by online traders, and encouraged on Reddit message boards, to beat short sellers. AMC shares gained 280% last week and are up 525% so far.