LogFAQs > #950071474

Forceful_Dragon posted...

But the stock and money still change hands as a part of this process to the point that each party has either the stock they bought or the money they got afterwards.

So where is the middleman liability?

They're not buying and selling the stock to you at exactly the same time. If the price moves a lot in the meantime they can potentially lose (or gain) money.

My understanding is that typically the time gap will be very short, but here you have a very erratic stock that a ton of people are jumping on.

As far as Robinhood goes, they're not the market maker themselves; they apparently had to shut down trades because they literally did not have enough cash for collateral to facilitate everything while they waited for trades to clear.

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Congrats to azuarc, GotD2 Guru champ!