The home screen of the Robinhood site on a smartphone.
Gabby Jones | Bloomberg | Getty Images
Restrictions on Robinhood merchants tightened throughout Friday, allowing customers to buy only one share of GameStop.
The stock exchange application also expanded its list of restricted shares from 13 May earlier that day to 50.
“The table below shows the maximum number of stock and option contracts you can increase your positions on,” Robinhood wrote. CNBC recreated the mass.
The shortlist indicates to customers how many options and option contracts they can buy for a particular security. Robinhood customers can only buy one share and up to five GameStop option contracts; however, if a customer already owns one or more shares in GameStop, they can no longer purchase shares.
Robinhood’s restrictions could eliminate the wind of click-and-click traders trying to raise the price of GameStop However, Robinhood will not sell GameStop shares of any customer that already exceeds the limit of an action from a previous position.
Shares, which closed at 67%, fell from the session high as the new stricter limits were implemented. Earlier that day, customers could buy five shares of GameStop.
The most shares that customers could buy from any of the 50 shares were five. Customers without existing shares can only buy one share and 10 option contracts in AMC Entertainment, which is down from the previous 115 shares. AMC Entertainment shares rose 53%, but also exceeded the maximum values of the day. Customers can buy a single share from American Airlines, Bed Bath & Beyond and Koss.
The stock exchange application has also expanded its list of restricted shares. Some of the new names include Advanced Micro Devices, Starbucks, Novavax, General Motors and Beyond Meat.
On Thursday, Robinhood told customers it was only allowed to sell shares, not buy new ones, in certain securities that attracted social media attention from Reddit crowds. The firm has also raised the margin or amount of money requirements from a customer account when they will use leverage to buy a security. Robinhood’s decision was greeted with indignation, many users brought their dissatisfaction on Twitter.
Robinhood said the trading restrictions are risk management decisions to protect Robinhood and its clearing houses, but said the restrictions will be eased on Friday.
The pioneer of free transactions raised $ 1 billion in money for investors and used several lines of credit overnight to allow its customers to trade names such as GameStop and AMC Entertainment on Friday.
However, the restrictions became stricter during the trading day as the list of limited securities grew and the number of shares that customers could buy for certain shares.
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