/biz/ - Business & Finance

>>16163260
How the fuck can I make money if I only have $3 in my bank account. I'm 30 years old btw.

Can we still copy them and use the bug?

>>16163273
chainlink

>>16163286
Yes. I bet you can convince a bank to give you a loan with that as collateral too. Just infinite leverage yourself into wealth, the american way

>>16163297
Should I spend my $3 in chainlink?

they'll shut it down as soon as their one competent programmer gets back from vacation

>>16163260
Their margin room will disappear when the asset they use to leverage up drops by 0.1%.

But how could thismhappen? Did some traders finally cracked the unthinkable traders ridle on how to be always profitable?

Robinhood and all brokers are all losing market share and are now in full despair that they will actually allow this

>>16163404
they cracked the riddle of how to accumulate unimaginable debt very fast, faster than you can say guh

Means nothing since you don't actually own the stock or option you "buy" on robinhood

>>16163404
robinhood's retarded asset valuation. basically, you deposit 2k, so you unlock margin, buy 4k of stock on margin and sell covered calls back. robinhood doubles your margin so you keep doing this and you have unlimited margin

>>16163302
that’ll buy just over 1 link, how does just over 1 trillion dollars sound?

>>16163301
You think anyone is trying this? I've always had a suspicion that when scams like these arise, the jews are the first to know about it and diligently exploit it in large numbers, they do this to raise money for Israel black budget wars/projects.

>>16163286
The users who exploited this loophole are facing potential securities fraud charges. Be careful with this

>>16163260
So somebody turned 3k $ into 1.7 million $? That's pretty impressive, even if a shitload of luck might have been involved.

Y'all know that they aren't gonna be able to be allowed to cash out right? SEC won't let that happen

>>16163856
Im on it dude, tripled my 5k as we speak

as with every bug like this one, it would be fun to know how many people got insanely rich off it silently before it was shared to the plebs that are getting rekt now

>>16163301
>get million dollar loan
>”oh don’t worry I can pay it back lmao look I’ve got 1.2 million invested”
>start business
>make 2 million dollars
>pay off Robinhood before they send mercenaries to your door
>pay off loans
>get rich
Lmao, life on easy mode right now

wow a centralized operation got exploited and imploded from inside out
what a surprise

>>16163858
It is margin though, so they still only have $3k in equity. The trader owes Robinhood $1.7 million. If the position goes down significantly, this could be pretty devastating to the trader. They're taking a pretty big risk just to show off to their Reddit friends.

>>16163627
isn't that how all portfolio margin accounts work?

>>16164202
Not if the covered calls are deep in the money. The brokerage will consider that a liability.

What happens when people cash out? Isn't this gonna bankrupt robinhood?

No one going to link the GUH video where the kid got wrekt doing this and left with 50k debt?

https://www.youtube.com/watch?v=A-tNkuYV4_Q

>Robinhood turns into bitmex

I'm okay with this

>>16163856
>tfw these idiots get put away for fraud, when drumpfs insider options traders making billions don't get so much as an investigation

>>16164227
SEC making sure cashing out wont be option.

>>16164227
It isn't free money. It is unlimited leverage. You can't cash out before you pay back the money you borrowed. And if your stock goes down, you're still on the hook for the full loan amount.

Why is it getting easier and easier to make money? First bitmex, now this, i dont understand how people stay poor, just long 1000x and then cashout when the numbers on the screen pleases u

>>16163302
yes

>>16163286
If you want to go to prison. This shit could blow up BIG. If enough people catch wind and try this the entire market could crash.

>When the fucking retail traders are now trading with 1 million dollar + of DEBT

Jesus christ all mighty.

>>16164212
I don't even understand any of these terms, why the fuck am I even on biz lul

>>16163404
It’s a glitch. Here’s the jist if it
>deposit 2k
>Give Robinhood 1k as collateral
>They give you 2k as leverage
>Robinhood then sees that you have 3k in assets
>Give them 2k in collateral
>They give you 4K in leverage
>repeat infinitely

Basically the app can’t differentiate between debts and assets. It thinks your leverages are net assets and so you can infinitely leverage. This is securities fraud if you do this.

>>16164426
What if you use it on a foolproof play? Are you cashing out or not?

>>16163920
Nobody got rich off of it. You still owe Robinhood the money. You’re only profiting off margins which will be razor thin. It’s a fools gambit.

>>16164961
then why can we do it? Why is the person to blame and not the company?

its all digital money... not even paper money
once you try to cash out BAM security violations
and the kicker? robinhood gets to keep the profits

>>16163856
If I live in another country can they get me?

So what happens, you get up to 6 figures from Robin Hood, buy a safe option on the dip and then sell it when it goes up for massive profit?

>get 1mil
>buy the dip on a safe stock like mcds
>goes back up 1%
>cash out a free 10k+

I mean this app is called Robin Hood there is no way this wasn't intentional. They wanted to get idiots into debt.

>>16165010
Because you are knowingly exploiting a software glitch that makes something that should be impossible and IS illegal, possible. You are doing this to defraud the market. These are crimes. Having an unforeseen software glitch is not a crime, though they will still get fucked by the SEC for gross negligence and incompetence.

>>16164330
weak bait

>>16165047
Robinhood is only available to US customers.

can you get liq'd while the market is closed?

>>16164952

>>16163372
kek. yes, but he's going to have to wait till the next sprint starts before he can get to work. after than it's he can put in the hour it takes to commit a proper fix, but he'll still have at least another 2 weeks left in the sprint before it's reviewed for production.

What's stopping you from martingaling?

If you were using your own money, you would eventually go broke martingaling.

If you use Robinhood's money, if you're actually capable of unlimited amounts of leverage, can't you just raise the stakes if you actually blow up and owe Robinhood millions of dollars?

>>16165449
No because once it blows up you now have negative assets and the glitch won’t work. It only works because it sees your leverages as net positives, once you blow your wad it stops working. Technically you could leverage infinitely but you still have to pay it back by gambling it. These people are trying to play a big short and get rich quick. They haven’t realized yet that they’re going to prison for securities fraud either way. They’ll do mental gymnastics to say that they’re innocent because it’s Robinhoods problem, but no nigger that’s not how the law works. What they’re doing is illegal and they know it’s illegal. Yet they’re doing it anyway because they’ve convinced themselves that they’re innocent.

>retards are actually posting their trades online for epeen, complete with admission they're exploiting a glitch

At least make the lawyers work for their conviction.

>>16164330
okay leddit

>>16164236
>Congrats on your new debt

>>16163286
WHAT COMPANY DO WE BUY LADSA?

>>16163260
Lol how can they just be "looking into" this? Shouldn't it be just a few lines of code?

>>16163260
What the absolute fuck. Did I wake up after a stroke or something?! How the hell is The Infinite Money Cheat real life now?!

we all expected this from a pajeet company

>>16166137
Their response seems to indicate that they are 100% fucking inept, they have no idea at all how to actually stop this. They will get fucked so hard.

>>16166163
I'm assuming the two founders are "business guyz" who hired coders from the hurried shit streets of mumbai?

>>16166137
Seems like their system doesn't differentiate between debt and assets. Can't just add a if (wealth != debt) check at the start of the trading function, they need to rework the whole app.

>>16166186
Fair enough, but this seems like a fine time to take it down for maintenance. I guess they're worried about losing users but the alternative seems far worse.

>>16166163
They didn't even fix the box spread "cannot go tits up" issue, just banned it
Kind of hard to ban covered call writing in this case

Do none of you understand that this has been stopped?

It's over, and those who used the glitch will get sorted out.

>>16163404
They buy a stock on leverage and write call options on it or something. Then the options they purchased with margin are registered as assets in the account so you can use these assets as further collatoral for getting more leverage.
>buy 5k worth of stock
>write 5k worth of options
>account is registered as having 10k in assets (5k really because you borrowed the other 5k)
>use the 5k in borrowed money registered as asset to borrow more money
>repeat untill you reach infinite leverage
If they could reach a billion or a few hundred million, just a few of them, it would be enough to take over whole corporations.

Crash inbound, this is the equivalent of a shoe shiner giving stock tips.

>>16164994

You can keep doing this until you have 1m size in say FB shares. Then you can use your next 1m buy to buy sp500 calls.

So actually it's possible to take 1m of naked risk with 2000 USD

>>16166231
Who actually pays for the leverage in this case?
Robinhood or their clearinghouse (Apex I think it is)?
They have to have a limit of cash I would assume, unless they have a money printing machine

RH should have been closed by now. But suspiciously the SEC is always asleep when they're actually needed. PIGS

those guys who did this are so fucked. one of them makes <25k a yr and has <25k in assets...

literally going to go into bankruptcy if they sue for damages

>>16166265
That's why you move and get a new number
Can't get margin called if they can't call you

>>16165010
Because there is such a thing as "good faith." If the bank accidentally puts 200k in your account that you know you shouldn't have you dont get to spend it.

>>16166265
if you earn under 25k a year and have less than 25k in assets then declaring bankruptcy doesn't seem like a big deal

>>16166250
I assume RH has a credit line with some bank or custodial service. Not sure how much there's leveraged totally. But their credit line could extend into the hundreds millions/billions so they can probably sustain it for a while. Anyway, most of them will go bankrupt before they reach 5-10M. They'll be stuck in debt for the rest of their lifes.

>>16165542
Excited to see how this pans out desu

>>16165108
But the comoany has the power to shutdown leverage until the issue is fixed. But they don't.

>>16166350
>mental gymnastics

>>16166350
What does that matter? That's the equivalent of saying you're taking money out of an unattended register because it isn't locked.

>>16163260
Is there a way to cash out to monero?

>>16166302
Bank gives you too much money
>Theyll come after you legally if used and require extra on top cause they couldnt make money off of it and legal fees
Bank gives you too little money
>Your problem and if it takes a month to clear, all you get is the original amount nothing else for your trouble even though the bank was likely making money off of it

>>16166360
>>16166371
Its like leaving a million dollars unattented in a park. There will definitely be some tempted to take it. Thats what i'm saying but it seem robinhood makes enough out of margin that theyre taking the risk of leaving such a vulnerability open and admitting its existance. No doubt there will be those who use it.

For example say you left $1000 on a park bench and hid somewhere recording. Someone takes it. You hace it on film but you dont tell the person. You demand the mo ey back and they refuse. What do you think will happen in such a court case in the usa? Youre leaving it wide open knowing someone might take it.

Or when a car dealership tricks you and all you get is "shouldve read the fine print" even though they told you otherwise verbally.

>>16166490
However I'm not saying to take advantage of the bug. Interested in seeing how this pans out for those who took advantage.

I know the box spread guy got to keep the 10k but I don't think he knew it was a bug in the first place.

>>16166371
Except it is margin, so it is borrowing, not just taking. It is more like taking money out of an unattended register and leaving legally binding IOUs in its place.

>>16166512
The only real defense is if they didn't know about the glitch in the first place which is highly unlikely
Otherwise it's securities fraud, because they are intentionally overstating their collateral and getting a loan based on said collateral

>>16163856
I'm going to give a shot, brothers. Wish me luck that I don't get locked up.

>>16166490
I think legally you're supposed to take the money to the police and turn it in. You can try and defend them. But they're equally responsible.
>>16166521
Got me on that sure.

>>16166137

Robinhood customer service is piss fucking poor, I wouldn't be surprised if their entire outfit is like 5 people and something like this went ahead and ruined them since they have no agility.

I never knew I would live the day where troll science actually worked.

>>16166680
You should watch the video someone made of the guy who used like 500k worth of cash from robinhood. Walked away with lile 10k. Vid with audio on reddit couldnt find it on youtube with audio.

https://www.reddit.com/r/wallstreetbets/comments/ahy7dy/the_legend_of_1r0nyman/

>>16166324
>declare bankruptcy
>start the process over again

>>16163260
lel morons here thinking robin hood won't go after them to get their money back

>>16163260
>trying to scam a service with all your information since sign up
are they retarded?

>>16166770
You can't just discharge debts incurred via fraud

Imagine being this retarded that you think you will get to keep any money because you found a cool trick on a screen.

Do this. Market buy $ZOOM. Not $ZM, $ZOOM. The shitty dead company that people are shorting to zero. Squeeze those shorts. Cover at $20. Retire

>>16166805
>sorry my friend was using my phone
CHECKMATE FEDS

>>16166805
>take out $100k college loan
>job market dries up before you graduate
>stuck with loan

>businessman takes out $50 million loan
>business busts
>declares bankruptcy and starts anew

The American™ dream.

>>16166277
more like a new identity...

>>16163260
So how do you get actual liquidity from this? Invest the millions on a stock, wait til it increase 1%+ then sell all of it and transfer the gains to a off-shore account?

>>16166962
These retards are buying apple puts with 1 day to expiry

>>16166962
If I would go through with taking advantage of the glitch I would go all in on selling calls for a company I was certain would go up.
>$2,000 investment
>$998,000 provided by frens at robinhood
>$1,000,000 total
>if it goes up 5% sell immidiately
>Withdraw 52k
>Immidiately use the remaining $980,000 all of which is robinhoods
>sell more calls as a last ditch effot before a ban comes in
>make another 5%?
>withdraw and give back tge remaining money
>instant 100k with 2k on top (initial investment)
>can go be a neet for 4 years straight with that kind off money

>>16163301
>Just infinite leverage yourself into wealth, the american way
kek, it literally is. just a big game of musical chairs

>>16166962
selling deep OTM calls near expiry with on stock with low prices like AMD or ford. not sure how the loop bug works but something to do with robinhood not checking their $2000 gold leverage, so they get to use it over and over again.
of course it only is good if you win the trade. if you lose you end up owing RH however much you leveraged

>>16167364
Why does everyone keep bringing up KEK? What is so impressive about this company that it is always mentioned here? This Finnish company has some nice growth, yes, but it also has some big landslides. Can someone enlighten me why everyone talks about KEK?

>>16164330
Ftfy

>tfw these serfs get put away for fraud, when several large corporations, the government, and likely politician insider options traders make billions don't get so much as an investigation

>>16163856
no they aren't lol
it's all on robinhood
went from 4k to 23k with this glitch btw

>>16167826
either I'm too high or this board is just really fucking funny tonight

>>16166408
This

>>16168343
>fnny

>>16163260
This sounds like a publicity stunt to bring more users to the platform. Remember, more users, more fees.

>>16166231
Last part is wrong.

IMPORTANT: Robinhood DOES NOT direct trade on an exchange. They OWN the stocks in your portfolio and you trust them to entrust the monetary value to you. Even glitching no one can truly accumulate MORE equity in a company than Robinhood ALREADY HOLDS.

No one benefits, rh losses, but the memes are worth it I suppose.

>>16168577
manufactured controversy

It's like MakerDAO CDP

>>16165010
Precisely theres many financial regulations in place to prevent this from happening. That's why the barrier to being an accredited investor is so high. The SEC might force Robin hood to halt operations n shut down soon.

>>16165108
No they wont come after retail for computer fruad and abuse more any self violations it all actually falls on Robin hood. Lots of caved in brains here

>>16169651
Nor not more*

>>16169651
Sec violations*

You have your bank information, personal information, I think you give them a picture of your ID before signing up and also in sure your earnings are reported to the IRS since they send regular account statements.
From what in hearing if they pay back what they are somehow not supposed to have they don't get sued but like people said in this thread there's a pending SEC investigation for anyone who would be brave enough to withdraw this money so it's just a false flag and nothing worth paying much attention to

>>16166302
Okay, jew. Finder's keepers. I never signed shit agreeing to your kike "good faith" concept. Possession is 9/10ths of the law. If some dumb nigger deposits 200k into my account, out it goes. And nope, not gonna repay shit. What are you going to do about it?

Collectors? LOL. Subpoena? Go ahead. Fuck you. This is America. Civil suits can suck my fucking kong dong. Criminal? No proof. Identity theft/fraud is so rampant, you kikes can't prove SHIT.

>>16169774
Don't drop the soap anon

>>16169774
>november 2019
>thinking kikes need proof to get you
>not knowing they did 911, tens of evidence one google search away, npcq choose not to believe
>not knowing they control a pedophile ring and killed their billionaire pimp while he's in jail and everyone knew he was gonna be suicided
>thinking a literal who from kansas is going to trick them and use the muh this is america meme they themselves created to defend himself

>>16169774
Ignorance is no excuse and I'm sure you'll find that out soon. Good luck.

>>16169774
YIKES, You have a small slither of info & you get all arrogant about it!
>Possession is 9/10ths of the law
Whats the other 10%? What is this in relation to?
Your delusional Anon

Can you use it if you're not American?

There’s no bad publicity, they’ll end up with a bunch more “investors” ie kids losing their ass on penny and pot stocks.

>>16164947
well how do you think wageies slaves keep slaved.

Debt issuance to the max

>>16166408
I do think so lmao