How an "honest" stock exchange drove a Kazan trader into debt - page 3

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Alexey Volchanskiy:
So the whole story is made up and you have proof? )) On smartlab they write why he didn't apply until a month later, as the broker accepts claims within 24 hours.
Why do I need proof? I do not need it. If you believe me, please, I do not feel sorry.
 
George Merts:

He's done deals worth 160 million dollars and 23 billion roubles! Not every government can afford that much...

Compared to these figures, some miserable 30 million roubles debt is nothing...

Here, below, they say that in 4.5 hours the man managed to carry out more than 5000 transactions of buying and selling currency for 42 billion rubles !

That's 1000 deals per hour ! Less than 5 seconds per transaction ! When was there such a rush to think ?

No.... Once again I am convinced that scalping is an evil for a trader and a gold mine for a brokerage company.

I read the article, the situation became clear to me, because yesterday it was not clear at all from this podcast.
 
Dmitry Fedoseev:
Why do I need proof? I don't need it. If you believe me, please, I don't mind.
I don't give a shit, I don't trade on the stock exchange and I don't have an inheritance of 7 milliards.) It's easier for me.)
 

It's an advertisement, a trader now blogging about how much money he would have made after waiting 2 weeks...

It's a throw-in designed for newbies... What is this nonsense, "I saw that TOM is 13 kopecks more expensive than TOD" and decided to earn on it... It's the same as trying to make money on swaps...

 

Legislation in forex is changing. Remember in one of the clauses: "Professional participants with a certificate will be able to trade". Then they will say, look what incompetence leads to, go and take exams and pay for the training. Then "dummies" will get educated and everyone will be so determined that now they have millions in their pockets, they will sell out and forget about Forex).

Well, in fact, in essence, how did the system allow you to make trades with such a leverage....?

And so to the point. Now they start scolding speculators sometimes, and they create liquidity. If they don't, slippage will increase. And we'll see much bigger bounces, both one way and the other,

as the market becomes thinner.

 
Alexey Volchanskiy:

Went out tonight and listened to an interesting podcast, there for half an hour. Dear stockbrokers, did I get it right that by working on the stock market you can easily get into debt many times larger than your own deposit???

Not true. In this case the fault lies with the trader and the Alpha risk management department, who did not take into account the specific situation.

Specifically, alpha uses a specific risk model: their collateral is not charged in full if the trader holds a market-neutral position, which is what happened in this case. This is why the trader was able to accumulate a total position of several billion roubles. He bought the rouble today and sold it tomorrow, i.e. he took a classic swap and his net position was effectively zero. The only thing he did not take into account was that the rate for the funds he provided was higher than the swap. Another thing against him was that he placed on 31 December and then the banking system closed for 12 days, i.e. instead of one swap day he was in for 12, and with such a high transaction volume.

The alpha risk guys were too late to see this situation and warned him and then, as far as I understand, started covering him in the market (margin-calling in forex terms, although he did not have classic margin-calling).

 
Vasiliy Sokolov:
Not true. In this case, the fault lies with the trader and alpha's risk management department, which did not take into account the specific situation.
Normally it should have been closed by margin call. Not all at once, but in parts and he would have seen that they started to fix it partially, he would have asked questions why.
 
forexman77:
Normally it should have been closed by the margin call. Not all at once, but in parts and he would have seen that they started to fix him partially, he would have asked questions why.
He didn't have any classic margin call. Again, he did not have a market position as such. Don't think in terms of forex.
 
Alexey Volchanskiy:
So he was trading some kind of robot? Less than a second per trade.
Not at all. Don't forget that we are talking about an exchange, where one position can take dozens of trades (mutual settlements between counterparties). Given the volume of the swap taken, this number of trades could have come from just a dozen orders at a time, two at a time.
 
Dmitry Fedoseev:

That's some bullshit. I mean, made up, untrue. To what end?

Imagine yourself in this situation. You are profitable, suddenly someone calls you and says that you are losing. What is your reaction? And the guy starts frantically doing something.

Dima, it's simple, the settlement between counterparties is such a complex procedure in the exchange market that it is impossible to know for sure if you are sitting in profit or not, until the moment of clearing. For example, a positive variation margin after clearing can turn into a negative one and be credited already in the account.
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