Just because it's in a T&Cs agreement doesn't mean it's legal. This definitely breaks "good faith" in your brokerage and if inclined a court could still go after them. Granted this is the United States of America, and I think it's more than likely the courts do no such thing and just find it fully legal.
EDIT: Also, looks like since these weren't margin or discretionary accounts I don't know how RH will say it's legal, per here.
Yeah agreed. If this was all margin stuff then I get it, I'd be closing out anybody who was trading GME with my own money too. Regular retail holdings being auto-sold? lol bonk you're going to jail (except not really because we'll never jail bankers unless they're Asian)
Totally legal. Questionable but legal. It’s in any brokerages t&cs
Just because it's in a T&Cs agreement doesn't mean it's legal. This definitely breaks "good faith" in your brokerage and if inclined a court could still go after them. Granted this is the United States of America, and I think it's more than likely the courts do no such thing and just find it fully legal.
EDIT: Also, looks like since these weren't margin or discretionary accounts I don't know how RH will say it's legal, per here.
Oh shit? Not margin accounts? Yeah, super questionable legality in that case
It would be different if it was naked options or something
Yeah agreed. If this was all margin stuff then I get it, I'd be closing out anybody who was trading GME with my own money too. Regular retail holdings being auto-sold? lol bonk you're going to jail (except not really because we'll never jail bankers unless they're Asian)