Well, actually 18 days. CME sent out an advisory notice on April 3 and CL/WTI crashed on April 21.
Found that dude trading CL with an IB account
- Thread starter DarthSidious
- Start date
However, in the context of this thread, the problem wasn't that IB somehow got the wrong quotes from CME.
In any case, who would I sue in this case for having "potentially" lost millions of dollars?
https://www.bloomberg.com/news/arti...-broker-s-computers-and-inflicted-huge-losses
Bloomberg original story.
Bloomberg original story.
Testing of systems was not possible until 5 days prior. Read that notice again. The exchange was making a first step toward allowing negative pricing but at that point negative pricing orders would still be rejected by the exchange systems. The exchange then had 13 days to get their systems in order before those systems were available to brokers to plan, prepare, and program their systems.
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Any flash crash demonstrates the lack of true value in the market.
If you're willing to admit there's no value in the market and with HFTs and day traders it's just a casino for degenerates in states that don't have them - I will agree with you. Value investing is more or less dead with the HFTs, constant fed pumps, and "bull at any cost" strategies. It's a casino. If it's a casino then we should enforce casino requirements on the players. I am gambler. I bring enough to cover my losses and then some. For poker I usually walk into a 3/5 table with $2,000 or so in bankroll. Why is it so hard for traders to do the same? Is it perhaps because they lack proper risk control? If so, raise the margins. My point stands. But this is a contradiction. You're a day trader. A sophisticate of the market - not the check cashing free drink trash that throws their money away betting on 00s! Oh...wait. Isn't the mixing of debit cards and bank accounts with brokerage services the same thing...shucks. Almost like they know the psyche of a day trader can't resist depositing that sweet check from work and just putting some into a few gambles. Damn. Go watch a few TDA and Robinhood ads and get back to me.
If you want to gamble in the market we should legalize bucket shops. Make a building where you can place a parimutuel bet on a stock and run it like horse racing. Leave the market to investors. Otherwise it's just a casino.
I seem to have struck a nerve with you. Most traders don't like admitting they're gamblers. They look down their nose at people playing craps - yet we're both the same. Remarkable how all games of chance are gambles. I just ask for some parallels to be drawn here. The man in OPs post is a gambler. The difference between a casino gambler and him is that a casino gambler losing 9M in the casino isn't going to destroy a company.
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What you are advocating for would literally take away my livelihood, and presumably that of a lot of people on this board. And for what, just because of a perception (probably an incorrect one) that allowing "retards" with under 1M of capital to day trade is somehow creating risk for your own strategies?
Yeah, you could say that struck a nerve.
That's just wrong. You don't need that much money to trade a single contract of CL if the exchange requires, say, $5K per contract initial, and you use stops.
The CME was at fault here in many ways on this fubar. That is why they now have no limits on their energy products.
Next up? No limits on any future product, period. Yes, even the ES. Because when there are limits listed on their page, but those limits are not honored, who would trust them? The CME does not HAVE to follow any particular breaker-model the SEC came up with.
Just wait until they pull the limit breakers away from cow products. Then ye shall see some fireworks.
MattZ
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This is not a reflection of any brokerage. This is a reflection of the internet. Traders with hypothetical knowledge only comment, blog, create YouTube videos, Twitter, etc.
Sadly new traders are becoming so lost because of information overload that it is hard to separate the BS from what is real.
Ya well hopefully that’s not a surprise to anyone given that the CFTC is the one in charge of futures regulation.
You do realize trading was halted multiple times on the day prices went negative per the special fluctuation limit guidelines that have been in place in NYMEX crude for years?
The part that's really scary is what if some nut had bought 2k contracts, instead of just 200. Or 20k contracts. At $30 a contract, that's not so far fetched. Could've been some serious damage to IB...