Chapter
🏹 Master Robinhood
Learn how Robinhood works, how it makes money, and how to trade with discipline instead of hype.
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- What Robinhood isRobinhood is a US investing app founded in 2013 by Vlad Tenev and Baiju Bhatt, with the phone app launching in…
- If it is free, how does it earn?Robinhood does not charge a commission, yet it is a real business that earns real money. Its main income…
- Payment for order flowWhen you tap buy, Robinhood does not fill the order itself. It routes your order to a large trading firm…
- Interest and Robinhood GoldBeyond order flow, Robinhood earns a lot from net interest. It holds customer cash and lends money to traders…
- Order types explainedAn order type is the instruction you give when buying or selling. A market order fills right away at the best…
- Fractional shares and recurring buysA fractional share lets you buy part of a share instead of a whole one. If a share costs a few hundred…
- Margin and the danger of leverageMargin means borrowing money from the broker to buy more than your cash allows. This is leverage, and it cuts…
- Options and their hidden dangersAn option is a contract that gives the right to buy or sell a stock at a set price before a deadline. A call…
- The GameStop episode of 2021In January 2021, a wave of retail traders, many from a Reddit community, piled into GameStop and other so…
- Safety, gamification, and settlementsRobinhood has been praised for opening investing to millions and criticized for making it feel like a game…
- Crypto, retirement, and cash featuresOver time Robinhood grew beyond stocks. It offers crypto trading and a separate Robinhood Wallet app that lets…
- Becoming a disciplined investorRobinhood is a powerful, low cost door into investing, and that is genuinely good. The risk is that ease…