Robinhood lowers trading limits on restricted stocks like GameStop

Robinhood on Tuesday reversed more of his trading limitations, now allowing customers to buy up to 100 GameStop shares.

GameStop rose from the low when the changes to Robinhood were announced. The brick and mortar game retailer’s shares were sinking by more than 40%, bringing their drop to about 60% this week.

Robinhood also increased the limits of AMC Entertainment and Express and Koss, BlackBerry and Genius Brands were no longer being restricted.

The shortlist tells customers how many shares and option contracts they can buy for a security.

Robinhood customers can now buy 100 shares of GameStop, above the previous limitation of 20. However, investors who own more than 100 shares cannot buy one more share of the shares.

Customers can now buy 1,250 shares of AMC Entertainment, compared with 350 at the start of the session. AMC’s shares fell 40% on Tuesday.

Robinhood customers are now able to purchase 3,000 shares of Express, over the limit of 1,000 shares. Investors can buy up to 12,000 Naked Brand Group shares above the previous 6,500 restrictions. Nokia’s purchase limit is the same at 2,000 shares.

Robinhood began restricting trading a handful of shares last week amid an increase in capital requirements for Depository Trust & Clearing Corporation due to the frenzy of retail investment in heavily sold names. Reddit-powered traders boosted GameStop’s stock by more than 400% in an effort to crush the hedge funds that sold the name.

However, as GameStop’s shares rose, regulators increased the amount that Robinhood needed to deposit with its clearing houses, in case the deals caused big losses.

Robinhood raised another $ 2.4 billion from investors to support its record customer growth, the company said in a blog on Monday. This added to the $ 1 billion raised last week to support Robinhood’s balance sheet in anticipation of rampant speculative trade. The company also used credit lines to raise more funds.