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 on Tuesday rolled back more of its trading limitations, now allowing clients to buy up to 100 shares of GameStop.
GameStop climbed off the lows as the Robinhood changes were announced. Shares of the brick-and-mortar game retailer were tanking more than 40%, bringing its decline to about 60% this week.
The restricted list tells clients how many shares and options contracts they can buy for a security.
Robinhood restricts trading of certain stocks
Robinhood clients can now buy 100 shares of GameStop, up from the previous limitation of 20. However, investors who own more than 100 shares 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 were down 40% on Tuesday.
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.
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-fueled 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 raised another $2.4 billion from investors to support its record customer growth, the company said in a blog post Monday. This added to the $1 billion raised last week to shore up Robinhood’s balance sheet in anticipation of the rampant speculative trading. The company also tapped credit lines for more funds.