Traders Take Advantage of Robinhood's ‘Infinite Leverage’ Glitch

The video discusses a glitch in Robinhood's system that allows users to gain infinite leverage by selling calls, which is then counted as capital. This glitch has led to significant trades, with some users turning a $4,000 investment into $1,000,000. The issue is timely, coinciding with the Money 2020 event, and highlights the challenges Robinhood faces as it considers a banking charter. The glitch is reportedly isolated to a few users, but it raises concerns about the platform's scalability and growth.

What is the main issue with Robin Hood's system as discussed in the first section?

• The app frequently crashes.

• Users can gain infinite leverage with a small deposit.

• The platform charges excessive fees.

• Users are unable to access their accounts.

How are certain Robin Hood users taking advantage of the glitch?

• By avoiding transaction fees.

• By hacking into other users' accounts.

• By selling calls and counting it as capital.

• By buying stocks at a discount.

What significant event is mentioned in relation to the fintech industry?

• The launch of a new cryptocurrency.

• The Money 2020 event.

• A major stock market crash.

• The introduction of a new trading app.

What potential future step is Robin Hood considering as mentioned in the final section?

• Obtaining a banking charter.

• Launching a new mobile app.

• Acquiring a major bank.

• Partnering with a cryptocurrency exchange.

What is the nature of the trades being made due to the glitch?

• They are small and insignificant.

• They are highly risky and large-scale.

• They are completely safe and secure.

• They are illegal and banned.