Robinhood relaxes trading limits on restricted stocks such as GameStop

Robinhood reversed more of its trading restrictions on Tuesday, allowing customers to buy up to 100 shares of GameStop.

GameStop climbed from its low point when the Robinhood changes were announced. Shares of the physical retailer are tanking more than 40%, bringing the decline to about 60% this week.

Robinhood also increased the limits for AMC Entertainment and Express and Koss, BlackBerry and Genius Brands were no longer limited.

The limited list tells clients how many shares and options contracts they can buy for a security.

Robinhood customers can now buy 100 GameStop shares, up from the previous limit of 20. However, investors who own more than 100 shares cannot buy another share of the shares.

Customers can now buy 1,250 shares of AMC Entertainment, up from 350 earlier in the trading day. Shares of AMC fell 40% on Tuesday.

Robinhood began restricting trading in a handful of stocks last week amid an increase in the Depository Trust & Clearing Corporation’s capital requirements due to the frenzy of retail investing in heavily shorted names. Reddit-fueled traders boosted GameStop’s stock by more than 400% in an attempt to crush the hedge funds shorting the name.

As GameStop’s stock increased, regulatory agencies increased the amount Robinhood needed to deposit with its clearing houses in case the trades caused large losses.

Robinhood raised an additional $ 2.4 billion 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 support Robinhood’s balance sheet in anticipation of rampant speculative trading. The company also used credit lines for more funds.

Robinhood customers can now purchase 3,000 shares of Express, up from the 1,000-share limit. Investors can buy up to 12,000 shares of Naked Brand Group, while the previous 6,500 restrictions were no greater. Nokia’s buying limit is the same with 2,000 shares.