Robinhood has been one of the leading trading platforms for a long time. If you have ever used Robinhood App, you might have known that the default setting enables Sharing Trading, also known as Margin Investing, the way it appears on the app. By following this process, users can loan out the user's stock to other users. Although many people use this feature, some users might not like it. So, they can turn it off.
How to turn off the Margin Investing Feature on the app?
To disable the margin investing feature (share lending) through the app, one has to follow the below-given steps:- Open the app
- Hit the account button, which is at the bottom right of the screen
- Go to the settings option
- Select the "Robinhood Gold" from the list
- Click on "Margin Investing" at the top
- Click on "Disable Margin Investing" on the screen
- Go back to the "Äccount" screen
- Go to the "Investing" menu
- Select "Day Trade Setting" from the list
- Disable the "Instant Settlement" option
It is important to note that turning off margin investing through the app is available to Robinhood Gold customers only. However, everyone else can disable the Instant Settlement feature, which also prevents the share lending feature.
You must know that changing the instant settlement settings will temporarily block the purchase of stocks. However, stocks can be sold anytime by investors.
The feature of share lending or margin investing can support short-sellers and hedge funds. However, it is opposed by many active traders.
Those against the feature of share lending turn off this feature as soon as possible.