Robinhood loosens trading limits on restricted stocks like GameStop

Robinhood on Tuesday rescinded its trading limitations further, now allowing clients to buy up to 100 shares of GameStop.

GameStop came down from the bottom when the changes to Robinhood were announced. Shares of the brick-and-mortar retailer fell more than 40%, taking its decline to about 60% this week.

Robinhood also increased the limits on AMC Entertainment and Express and the Koss, BlackBerry and Genius brands were no longer limited.

The shortlist tells clients how many stocks and option contracts they can buy for a security.

Robinhood customers can now purchase 100 GameStop shares, up from 20 previously. However, investors who own more than 100 shares cannot purchase one more share.

Clients can now purchase 1,250 shares of AMC Entertainment, up from 350 earlier in the trading day. AMC shares were down 40% on Tuesday.

Robinhood began restricting trading of a handful of stocks last week amid an increase in capital requirements from the Depository Trust & Clearing Corporation due to the frenzy of retail investing in heavily bypassed names . Reddit-powered traders have upped GameStop stock by more than 400% in a bid to crush the hedge funds that bypassed the name.

However, as GameStop’s stock grew, regulators increased the amount Robinhood had to deposit in its clearinghouses in case trades caused heavy losses.

Robinhood has raised an additional $ 2.4 billion from investors to support its record customer growth, the company said in a blog post on Monday. This is in addition to the billion dollars raised last week to shore up Robinhood’s balance sheet in anticipation of rampant speculative trade. The company also tapped lines of credit for more funds.

Robinhood customers can now buy 3,000 shares of Express, compared to 1,000 shares. Investors can buy up to 12,000 shares of Naked Brand Group compared to previous restrictions of 6,500. Nokia’s purchase limit is the same at 2,000 shares.