1/28, 3:40 PM (Source: TeleTrader)
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Brokers restrict GameStop trading amid short squeeze

Interactive Brokers and Robinhood announced on Thursday that they suspended trading of GameStop and other securities targeted by retail investors. A day earlier, similar moves were made by Charles Schwab and TD Ameritrade.

Robinhood stressed that it increased margin requirements for some securities and added that it restricted transactions for stocks including GameStop, AMC Theatres, Blackberry, Express, Koss, Nokia and Bed, Bath and Beyond to position closing only. Meanwhile, Interactive Brokes added it is worried about the extraordinary market volatility and pointed out "long stock positions will require 100% margin and short stock positions will require 300% margin until further notice."

The GameStop short squeeze started on January 22 when users on Reddit forum WallStreetBets started excessively buying the stock after they deemed it to be undervalued which led to hedge funds being forced to sell their positions and cover their shorts.

Breaking the News / VP