Can someone explain this to me?

Does this mean a cash secured put will continue to earn interest until the expiration date of an option order

Quote:

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We've updated our agreements and disclosures to reflect upcoming changes to the High-Yield Cash Program, which is available to Robinhood Gold subscribers.
Effective on or after March 9, 2026, the High-Yield Cash Program will also pay interest on eligible options cash collateral (only applicable if you have enabled options trading). The same interest rate will be paid on Cash Sweep Program, Brokerage-Held Cash Program and options cash collateral balances.

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EFR said:

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They should. Honestly it is kind of shady that they weren't already, it is cash in your account it should be making interest.

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It's not "shady" at all, but it's certainly NOT in the customer's best interest. It is clearly stated in the brokerage agreement you sign when setting up accounts (if you read them, that is). It is also one of the larger generators of profit for brokerage companies, and they argue that this helps offset some of the other services they provide for "free", such as zero commission trades, trading platforms, etc.

The fact is, Robinhood moving this direction is good news for brokerage consumers, and I can only hope this will FINALLY convince Schwab to follow suit (Fidelity and most others already offer this feature). It's really my only remaining gripe with Schwab, as they don't offer cash sweeps or automatically provide money market interest on cash within a brokerage account (since 2017), except for very large or institutional clients. I have to periodically move money into a money market fund, and it precludes me from taking quick action on a trade that exceeds my zero-interest earning cash position in my brokerage accounts.

I saw yesterday that they doing prediction markets. I don't use robinhood but it's weird that your broker is also your casino.

not weird at all considering the market is a casino

EliteZags said:

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not weird at all considering the market is a casino

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I still think it's weird to have both avenues in the same application. It's incongruent but that's also how the younger generation's view investing now which is throwing caution to the wind when trying to get an ROI.

I also don't trust Robinhood in the least considering their past bad actor practices.

Put your money there at your own risk.

RH has hit a growth ceiling when it comes to everyday investors.

They've always styled themselves like a sportsbook anyways, no reason not to get into prediction markets as long as they stay legal.

As you said, investing has more or less been gamified for this and future generations. Just too much money out there for these brokerages to ignore it.

It's just easier for a shop like RH to expand to that, but have no doubt that the major brokerages aren't far behind.

Not going to lie. The ease of throwing a few bucks on a game with my BS cash account is nice.

I don't gamble a lot, so don't have a separate account. RH sucked me in.

Diggity said:

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Not going to lie. The ease of throwing a few bucks on a game with my BS cash account is nice.

I don't gamble a lot, so don't have a separate account. RH sucked me in.

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Yeah, it's great to have that ease of use.

The problem as I'm sure you know is that every teenage boy is talking odds/gambling now.

Proposition Joe said:

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Diggity said:

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Not going to lie. The ease of throwing a few bucks on a game with my BS cash account is nice.

I don't gamble a lot, so don't have a separate account. RH sucked me in.

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Yeah, it's great to have that ease of use.

The problem as I'm sure you know is that every teenage boy is talking odds/gambling now.

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Prize Picks is wildly popular amongst the boys in my oldest son's friend group. Incredible, really.

The Trump victory gave me a $1000 win.
Probably the only time I will use RH for "betting".