It takes a couple days for stock trades to settle. While that process is happening Robinhood has to keep collateral at the clearing house to ensure that when settlement happens the money is there to pay the other party.
Volatility makes that requirement go up because of the time risk. If you agree to buy something for $300, fail to settle, and it drops to $20 in the meantime that counterparty is out more money.
Volatility makes that requirement go up because of the time risk. If you agree to buy something for $300, fail to settle, and it drops to $20 in the meantime that counterparty is out more money.