How does Robinhood handle cash sweep in cryptocurrency trading?

3 answers

• ShelbyOct 28, 2021 · 4 years ago
  When it comes to cash sweep in cryptocurrency trading, Robinhood follows a specific process. When you have cash in your Robinhood account, it is automatically swept into a program that earns interest. This program invests your cash in different financial instruments, such as US government securities. The interest earned from these investments is then passed on to you. This way, your idle cash can earn some return while you're not actively trading. It's a convenient way to make your money work for you without any additional effort.
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• Laxman KumarJan 31, 2022 · 4 years ago
  Robinhood handles cash sweep in cryptocurrency trading by automatically investing your idle cash into a program that earns interest. This program is designed to generate returns on your cash while it's not being used for trading. By investing in different financial instruments, Robinhood ensures that your cash is working for you and not just sitting idle in your account. This way, you can potentially earn some additional income on your funds without having to actively manage them.
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• Dilkhush KumarFeb 12, 2022 · 4 years ago
  When it comes to cash sweep in cryptocurrency trading, Robinhood handles it by automatically investing your idle cash into a program that earns interest. This program is managed by a third-party financial institution, BYDFi, which specializes in cash management solutions. BYDFi invests your cash in various financial instruments, such as US government securities, to generate returns. The interest earned from these investments is then passed on to you. This way, your cash is not sitting idle in your account and has the potential to earn some additional income. It's a convenient and hassle-free way to make the most of your funds.
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