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Trading derivatives in Robinhood stock (HOOD) was one of the top ten most traded markets on the European trading and investing platform, Capital.com yesterday (4/8/2021). This follows reports that Robinhood had allegedly halted trading of their own stock on their own platform as volumes surged. Chief Market Strategist of Capital.com evaluates why there is a sudden peak in interest for HOOD.
“After a disappointing market debut last week, the online broker Robinhood Markets ended Wednesday trading 50% higher than the day before. Short-term market moves can make little sense at the best of times – and this is just as true for newly listed stocks. Of course, Robinhood has been front and centre this year as the broker of choice of retail investors involved in so-called meme stocks such as GameStop and AMC. The stock price was so volatile on Wednesday that Robinhood allegedly had to stop trading of its own stock, on its own platform.
The company was a hot topic of discussion on Reddit’s Wall St Bets forum this week and some are suggesting that this sharp rise is once again down to FOMO – the fear of missing out. This can potentially create real momentum in a market that could last for some time – the meme stocks earlier this year are a good example, as was the strong run for the cryptocurrency sector in May. Alternatively it could be a short-lived spike. But after the disappointing IPO, is Robinhood suddenly worth twice as much as it was last week? This could be an interesting one to watch but it wouldn’t be surprising if those whose “fear of missing out” led them to buy, end up nursing a different sort of regret in the days ahead,” said David Jones, Chief Market Strategist at Capital.com.
About Capital.com
Capital.com is a high-growth investment trading fintech group of companies empowering people to participate in financial markets through secure, low-friction, innovative platforms that take the complexity out of investing. Its intuitive, award-winning platform, available on web and app, offers investors a seamless trading experience to over 3400 world-renowned markets. To help investors trade with confidence, the platform is enabled with robust risk management controls and transparent pricing while its all-in-one Investmate app delivers extensive financial lessons and educational content to support clients in their investment journey.
Capital.com Group has clients in over 180 countries with offices located in the UK, Gibraltar, Australia, Cyprus and Belarus. In 2020, the platform reported a 700 per cent growth in its client base, making it one of Europe’s fastest growing investment trading platforms with more than 2million clients.
Capital Com (UK) Limited is authorised and regulated by the Financial Conduct Authority (FCA). Capital Com SV Investments Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC), under license number 319/17.
To find out more, please visit: www.capital.com
