Sources Contact Advanced Search Tutorials

An Interest In:

Web News this Week

Search Archive

Some of Our Sources

View All Sources

Help Webnuz

Referal links:

June 21, 2020 01:34 am

Robinhood Changes Trading App After 20-Year-Old's Suicide

CNBC reports on the odd circumstances around the suicide of 20-year-old college student options trader Alex Kearns:It was less than 24 hours after Alex had checked his account at the wildly popular trading app, Robinhood. In his note, he said he thought he had quickly racked up a negative $730,165 cash balance. But Alex may have misunderstood the Robinhood financial statement, according to a relative. "He thought he was exposed, he thought that ending his life would protect his family from the exposure," Bill Brewster, a cousin by marriage and an analyst at Sullimar Capital, told CNBC in a phone interview... In the note to his family seen by CNBC, Alex accused Robinhood of allowing him to pile on too much risk. He claimed the puts he bought, and the shares sold "should have cancelled out" but in hindsight, he said he had "no clue" what he was doing. "How was a 20 year old with no income able to get assigned almost a million dollars worth of leverage?" the note reads. "There was no intention to be assigned this much and take this much risk, and I only thought that I was risking the money that I actually owned." Friday Robinhood announced it was making a $250,000 donation to the American Foundation for Suicide Prevention, expanding its educational content about options trading, and rolling out changes to its in-app messages about multi-leg options spreads. And of course, they also announced that they're "working on changes to our user interface, including the way buying power is displayed. "These changes will take a bit of time to roll out, but our teams are hard at work."

Slashdot

Slashdot was originally created in September of 1997 by Rob "CmdrTaco" Malda. Today it is owned by Geeknet, Inc..

More About this Source Visit Slashdot