The Robinhood website home screen on a smartphone.
Gabby Jones | Bloomberg | Getty Images
The restrictions on Robinhood dealers are still strict and will get stricter as the day progresses on Friday. Now GameStop owners can only buy one additional share.
The stock trading app has also expanded its restricted stocks list to 23 from 13 earlier in the day.
Robinhood’s limitations are quite limited:
Robinhood trading limits on certain stocks
The restricted list tells customers how many stock and options contracts they can buy for a particular security. Robinhood customers holding GameStop can only purchase one share and up to five options contracts.
The stock, which is up 50%, is way behind its daily highs as the new stricter limits were put in place. Earlier in the day, owners could buy five GameStop shares.
It was unclear if customers looking to open a GameStop position could only buy a single share.
“Opening new positions in the securities listed in the table below is currently permitted but limited,” Robinhood said in the help message.
Customers can buy up to 10 additional stock and 10 options contracts with AMC Entertainment, a decrease from 115 previous stocks. AMC Entertainment’s shares are up 50% but are also well below their daily highs.
The stock trading app has also expanded its list of restricted stocks. Some of the new names include Advanced Micro Devices, Jaguar Health, and Rolls-Royce.
On Thursday, Robinhood told its customers that it was only allowed to sell stocks of certain securities, not buy new ones that had caught the attention of the Reddit masses on social media. The company also increased the margin requirements, or the amount of money on a customer account, when they use leverage to purchase a security.
Robinhood said the trade restrictions were risk management decisions aimed at protecting Robinhood and its clearinghouses, but indicated that the restrictions would be relaxed Friday.
The free trade pioneer raised $ 1 billion in investor money and used more lines of credit overnight to allow its customers to trade names like GameStop and AMC Entertainment on Friday.
However, it seems that the restrictions become tighter as the trading day progresses as the list of limited stocks grows and the number of stocks customers can buy for certain stocks shrinks.
Robinhood did not immediately respond to CNBC’s request for comment.
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