Joining the CME gang
- Thread starter hilmy83
- Start date
That is really impressive man, good for you.
Thinking back at the times I joined your live trading stream on YouTube (fading moves away from VWAP) it looks like you made a huge leap.
You made what is an average yearly wage in a lot of countries and much more than that in even more countries in about a week or so.
Thinking back at the times I joined your live trading stream on YouTube (fading moves away from VWAP) it looks like you made a huge leap.
You made what is an average yearly wage in a lot of countries and much more than that in even more countries in about a week or so.
Ahh my YouTube days ..it was good while it lasted
Right now I just want this month to be solid. I want to withdraw a sizable amount. Put some in dividend stock account, in savings, and in a fund for other future investment ideas.
After that I would be less worried about this account performance.
Like an athlete, just preparing for a future when I retire or when I get injured (blow up)
So, basically you don't dream to become next Paul Tudor Jones.... Why don't you try? Retire as a billionaire (you must be a multi-millionaire already).... Sounds nice, isn't it?
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So, basically you don't dream to become next Paul Tudor Jones.... Why don't you try? Retire as a billionaire (you must be a multi-millionaire already).... Sounds nice, isn't it?
Nope. I honestly don't care too much for fancy livin
Just give me a good internet connection and roof over my head..I'm happy
2. What is fellow customer risk and how is that relevant in an FCM bankruptcy? Fellow customer risk is the risk that one or more customers of an FCM will default on their obligations to the FCM and that such loss will be so great that the FCM, in turn, will default on its obligations (i) to a DCO, or (ii) a clearing FCM that carries the FCM’s customer account.
As discussed below, Commission Rule 1.23 prohibits an FCM from using the funds of one customer to meet the obligations of another customer. Rather, an FCM must use its own funds to meet a defaulting customer’s obligations to a DCO or clearing FCM. In general, therefore, a customer’s loss would have to be substantial before other customers would be exposed to fellow customer risk.
Nonetheless, an FCM’s excess adjusted net capital is a factor that a customer should consider carefully in selecting an FCM to carry the customer’s account. If the loss is so great that, notwithstanding the application of the FCM’s own funds, there is a shortfall in the amount of customer funds required to be held in segregation, the FCM will default and likely be placed into bankruptcy.
In these circumstances, the Bankruptcy Code provides that non-defaulting customers will share in any shortfall, pro rata. A shortfall in customer segregated funds may also make the transfer of the accounts of non-defaulting customers to another FCM more difficult. Customers are exposed to fellow customer risk in all markets for which an FCM holds customer funds, i.e., futures and options on futures traded on US exchanges, futures and options on futures contracts traded on foreign boards of trade, and cleared swaps.
The Commission’s recently-adopted rules governing cleared swaps customer collateral, discussed below, are intended to provide cleared swaps customers enhanced protection from fellow customer risk
I looked at other FCMS, bigger ones pretty much set it at 16500 for day margins. Some medium size like tradestation is at 25% (around 4000).
I mean do i really need to worry about this shit? i feel like AMPs risk control is sufficient. They recently said they will liquidate positions 100 ticks before the halt limits are hit in different sessions. So the losses would be minimized locally way before any gap losses can occur.
As discussed below, Commission Rule 1.23 prohibits an FCM from using the funds of one customer to meet the obligations of another customer. Rather, an FCM must use its own funds to meet a defaulting customer’s obligations to a DCO or clearing FCM. In general, therefore, a customer’s loss would have to be substantial before other customers would be exposed to fellow customer risk.
Nonetheless, an FCM’s excess adjusted net capital is a factor that a customer should consider carefully in selecting an FCM to carry the customer’s account. If the loss is so great that, notwithstanding the application of the FCM’s own funds, there is a shortfall in the amount of customer funds required to be held in segregation, the FCM will default and likely be placed into bankruptcy.
In these circumstances, the Bankruptcy Code provides that non-defaulting customers will share in any shortfall, pro rata. A shortfall in customer segregated funds may also make the transfer of the accounts of non-defaulting customers to another FCM more difficult. Customers are exposed to fellow customer risk in all markets for which an FCM holds customer funds, i.e., futures and options on futures traded on US exchanges, futures and options on futures contracts traded on foreign boards of trade, and cleared swaps.
The Commission’s recently-adopted rules governing cleared swaps customer collateral, discussed below, are intended to provide cleared swaps customers enhanced protection from fellow customer risk
I looked at other FCMS, bigger ones pretty much set it at 16500 for day margins. Some medium size like tradestation is at 25% (around 4000).
I mean do i really need to worry about this shit? i feel like AMPs risk control is sufficient. They recently said they will liquidate positions 100 ticks before the halt limits are hit in different sessions. So the losses would be minimized locally way before any gap losses can occur.
Worry is too strong of a word. Just know the risks and if acceptable, move forward. It's really all any of us can do regardless of the chosen broker/fcm. I won't recite modern history. The piece to understand is a large-sized event, which may or may not be contained to a single firm, firms are required to immediately cover the customers debit. It may take a substantial amount of time, if at all, for the debt to be collected.
As for AMP (or any other broker/fcm)...
1) To RELY on the broker/fcm to PREVENT or minimize adverse outcomes in YOUR account is plain STUPID!
2) As already mentioned, firms are required to immediately cover the customers debit. Therefore smaller balance sheets do carry a higher risk. Remember the scene in Trading Places... Margin Call gentlemen. No exceptions.
Do we have any case in which traders lost money due to the bankruptcy of their brokers? You may want to read this. Trading with U.S. brokers looks very safe: https://www.elitetrader.com/et/threads/ampfutures.322820/#post-4687083