How an "honest" stock exchange drove a Kazan trader into debt - page 5
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A novice private trader from Kazan, on the last trading day of last year, managed to conduct currency transactions on the stock exchange worth RUB 42 billion with only RUB 5.5 million in his account and went completely bankrupt. How could this happen?
The only thing I can't understand is the leverage
how did the person get the leverage of 7636? Even if one considers the situation as a locking trade, he must have received money to make transactions and clearing cannot be counted here - i.e. the expectation that the money will be repaid through a counter transaction because a time gap is created - give money today and receive it tomorrow. It is also not clear why the broker has decided that it is one trading instrument, it is like equating futures with different expiry dates to one trading instrument.
I was reading on some site that provides BOO by clicking on an advertisement, and there was just a similar situation, not specifically about this case. Like, this can happen to you in forex, but not in BOO. Well, this fiction is naturally related to each other. The difference between the two is that the market is not only a source of income, but also a source of raw materials.
It's funny to watch the idle public talking about things they can't even approximately understand...
It's also amusing to watch whenVasiliy Sokolov appears and throws in another phrase with an information component equal to zero ))
A novice private trader from Kazan, on the last trading day of last year, managed to conduct currency transactions on the stock exchange worth RUB 42 billion with only RUB 5.5 million in his account and went completely bankrupt. How could this happen?
The only thing I can't understand is the leverage
how did the person get the leverage of 7636? Even if one considers the situation as a locking trade, he must have received money to make transactions and clearing cannot be counted here - i.e. the expectation that the money will be repaid by a counter transaction because a time gap is created - give money today and receive it tomorrow. It is also not clear why the broker has decided that it is one trading instrument, it is like equating futures with different expiry dates to one trading instrument.
An article judge is not a shoulder. It's just that Alfabank gave a customer an 11-day loan without an income certificate.
I think this trader is lying. For one thing, too many trades are made and, for another, arbitrage is kind of abrupt for a trader with half a year of experience. Usually one learns about arbitrage at least after 3 years of trading. And in general you have to take some valerian just to turn over such sums in peace.
That's a lot of money for you. But for him, with five million in his account, which apparently he didn't really need, it was almost a seed...
Especially since, according to him, it wasn't his money, it was his wife's... He's also some kind of alphonist (although he seems to be lying)... That I would take even a penny from my wife??? I'd be ashamed... But I'm a pauper... And the rich have their own quirks... say, five million in one day... There's some not-so-great stuff on the Smart Labs forum. But here... The kid was on his way to success, but he didn't get lucky.
All in all, I don't think anything bad happened. Alphabank will admit to 9 million in debt for a terminal error. They'll write it off. Five million is the net profit of Alfabank... The trader owes nothing. His account is zeroed out. Well traded on the last day of the year...
The article judgement is not the shoulder. It's just that Alfabank gave the client an 11-day loan without an income statement.
So margin trading is trading on credit - i.e. secured with your own capital, the ratio of own funds to borrowed funds is called leverage...
Here is what is interestingly written in the law
The Federal Law dated 22.04.1996 N 39-FZ "On Securities Market
"
...
4. A broker shall be entitled to lend cash and/or securities to a client for execution of securities purchase and sale transactions, provided that the client provides collateral. Transactions executed using cash and/or securities lent by a broker are referred to as margin transactions.
The terms of the loan agreement, including the loan amount or the procedure for determining it, may be specified in the brokerage service agreement. The document certifying the loan of a certain amount of money or a certain quantity of securities shall be a broker's report on the executed margin transactions or another document specified in the agreement.
The broker is entitled to charge the client with interest on the loans provided. The Broker may only accept cash and/or securities as collateral for the Client's obligations under the loans provided.
Securities and other property of the client at the disposal of the broker, including property serving as collateral for the client's obligations under loans provided by the broker, shall be subject to revaluation by the broker in the manner and on the terms established by the Bank of Russia. Claims on transactions concluded at the client's expense are also subject to revaluation.
...
"
Based on this - trading risks should be limited solely to collateral, but it is not clear about the interest - perhaps in court and the interest can be revalued to collateral funds...
In any case, the company makes a huge unsecured loan and forces the buyer to close the position and pay the swap fee without actually fulfilling the payment for buying the currency after the holidays. And it is interesting, if he did not close, the swap would be charged on the first trading day - 10 days later, and what would be the trading result if he closed at the end of the day, because the increase for the day between low and high exceeded 1%, which easily cover should be 10% per annum for the borrowed funds, even taking into account the holidays.
The bottom line gives the impression that the broker deliberately drained the man by calling him on an intraday pullback...
That's a lot of money for you. But for him, with five million in his account, which apparently he didn't really need, it was almost a seed...
Especially since, according to him, it wasn't his money, it was his wife's... He's also some kind of alphonist (although he seems to be lying)... That I would take even a penny from my wife??? I'd be ashamed... But I'm a pauper... And the rich have their own quirks... say, five million in one day... There's some not-so-great stuff on the Smart Labs forum. But here... The kid was on his way to success, but he didn't get lucky.
All in all, I don't think it's a big deal. Nine million in debt Alfabank admits to a terminal error. And will write off that debt. Five million is the net profit of Alfabank... The trader owes nothing. His account is zeroed out. Well traded on the last day of the year...