High-Volatility Stock Protection

We believe that democratizing access to the stock market also brings the responsibility of making our users aware of risky behavior. To help prevent a poor investing experience on Robinhood Instant accounts, we’ve added a helpful feature based on regulatory guidance for day trading high-volatility stocks.

High-Volatility Stocks

  • Low-dollar-value (<$3.00) stocks: Low-priced securities often have high price volatility and erratic market movements. Often, when investors buy or sell these stocks, they significantly affect the quoted price of the stock.
  • Leveraged ETFs: These stocks are rebalanced daily and may decay in value over time.

The entire list of high-volatility stocks changes day to day because it’s based on a variety of factors, including the price.

What To Expect

  • Funds from the sale of a high-volatility stock will be available the day after the sale.
  • You’ll need to use funds from the previous day to buy one of the high-volatility stocks.

Pattern Day Trade Protection and High-Volatility Stock Protection are both useful tools for considering your investment goals and risk tolerance while you trade, but they aren’t the same. Our day trade warning applies to all stocks, while High-Volatility Stock Protection only applies to a limited number of stocks on Robinhood.

Was this article helpful?
13 out of 17 found this helpful
Have more questions? Submit a request