Trading information for GameStop is displayed on the Robinhood App as another screen displays the Robinhood logo in this photo illustration January 29, 2021.
Brendan McDermid | Reuters
Robinhood further rolled back some if its trading limitations on Tuesday, now allowing clients to buy up to 100 shares of GameStop.
Meanwhile, shares of the brick-and-mortar retailer are tanking more than 40%, bringing its week-to-date decline to about 60%.
The brokerage also raised the limits on AMC Entertainment, Express and a few of the other five restricted stocks. Koss, BlackBerry and Genius Brands are no longer being restricted.
The restricted list tells clients how many shares and options contracts they can buy pertaining to a particular security.
Robinhood restricts trading of certain stocks
Source: Robinhood
Robinhood clients can now buy 100 shares of GameStop, up from the previous amount of 20 shares. However, if an investor owns more than 100 shares of GameStop, they can’t buy one more share of the stock.
Clients can now buy 1,250 shares of AMC Entertainment, up from the 350 earlier in the trading day. Shares of AMC are down 40% on Tuesday.
Robinhood started restricting a trading of a handful of stocks last week amid an increase in capital requirements from the Depository Trust & Clearing Corporation due to the retail investing frenzy in heavily shorted names. Reddit-obsessed traders drove GameStop’s stock up more than 400% in an effort to crush the hedge funds shorting the name.
However, while GameStop’s stock rose, regulatory bodies increased the amount that Robinhood needed to deposit at its clearinghouses in case the trades caused large losses.
Robinhood clients can now buy 3,000 shares of Express, up from the 1,000 share limit. Investors can buy up to 12,000 shares of Naked Brand Group up from the previous restrictions of 6,500. Nokia’s buying cap is the same at 2,000 shares.
