Do stock brokers monitor client accounts losses ?

[JSOP]

*Spits beverage at screen*

If you buy $500,000 worth of stock with your own cash, why would they liquidate you? The most you can lose is $500,000, if all the stocks in yer account drop to 0 and you sell all those positions at 0. Even then, there is no reason for them to "liquidate" you.

How often does that ever happen, anyways?

My utmost sympathy to your screen. I hope you gave it a good wash.

 

[JSOP]

If you had 500,000 and lost 500,000 in one day that's ur own money.

On borrowed margin, that's a different story.

As long as you don't lose any of the broker's money, the broker couldn't give a rat's a$$ how much you lost very much like a casino wouldn't care how much you lost playing their Russian Roulette.

 

[Mark Lapin]

Of course brokers monitor client losses. They will call you if you in in violation of margin requirements

 

[Overnight]

My utmost sympathy to your screen. I hope you gave it a good wash.

*spits beverage at JSOP's screen* That's funny.

 

[JSOP]

*spits beverage at JSOP's screen* That's funny.

Now you need to come over and clean my screen too.

 

[Ninja Mobile Trader VPS]

Many brokers do in fact monitor accounts for losses. As other posters have said, they won't stop you as long as margin is not involved. Here is an example letter Fidelity sends out when an account loses a substantial amount in a short period of time:

 

[turkeyneck]

Outside of margin, looks like they care because they want to hook you up with managed money and give you "advise" for a fee LOL.

 

[Katyannaria]

it all depends on the broker's approach to their work, many often monitor all the transactions of their traders, and the general work of each trader