Losses due to negative crude prices. Who's responsible?

[steve2222]

What a joke...

So the "class action" is a whopping three people who obviously lost their asses because they didn't know what they were doing, so now they're trying to pull the victim card and blame their losses on the broker.

This brings us to what I consider to be the #1 lesson for every person who decides to start trading:

Take 100% ownership of your actions. And I mean 100%. The consequences of your trading will always be a direct reflection of the choices that YOU MAKE.

And the same principle applies in every other aspect of life:

Your choices will always dictate your outcome. That's it. The choices you make for yourself, the choices you make for your family, and the choices you make in regards to who you associate with will determine the outcome you receive in all of those areas.

If you ever want to read a good book in regards to this topic, here's one I recommend. It has a military slant to it, but it still applies to every area of your life.


The bottom line is that any of those traders in the complaint could have exited their positions well before crude went negative. But they didn't. And because they didn't, and because they can't accept responsibility for their own choices, they are now choosing to cast the blame on someone else due to a scenario that never happened before in the history of crude trading prior to that date.

Hi Baron,

Why can I not see the name of the book? (I am using Google Chrome as my browser).

Cheers

 

[virtusa]

Hi Baron,

Why can I not see the name of the book? (I am using Google Chrome as my browser).

Cheers

I can't see it either. Using Firefox.

 

[bone]

“Extreme Ownership - How Navy SEALS Lead and Win”.

I can't see it either. Using Firefox.

 

[SunTrader]

Hi Baron,

Why can I not see the name of the book? (I am using Google Chrome as my browser).

Cheers

No problem for me using Chrome.

 

[Baron]

Hi Baron,

Why can I not see the name of the book? (I am using Google Chrome as my browser).

Cheers

You probably have an ad blocker installed.

 

[themickey]

You probably have an ad blocker installed.

Correct, once disabled you get this

 

[JSOP]

Hello all...here is some quick info.

1. All Financial losses due to these claimants trades were realized by AMP the same day (on settlement). No effect on our operations.
2. We have deeply researched this scenario and have provided all the accurate trade details to all the claimants and regulators. We will provide the same in court, if not dismissed.
3. All of these claimants were in CME E-Mini Crude Oil Futures, not Full Size physically delivered Crude contracts. They were NOT deliverable contracts, they are cash settled...which allows the trader to speculate (hold contract into expiration without the risk of delivery). Then you can see what happened to the market below....

AMP does NOT provide any trade advice or recommendations. These trades were purely the decisions of the claimants and it was absolutely their right to hold the contracts into expiration (cash settlement).

CME - (QM) E-mini Crude Oil Chart - 1 min bar - 1st negative price (-0.475) April 20 2020 at 1:08pm CST (63 Contracts Traded)

CME - (QM) E-mini Crude Oil Chart - 1 min bar - 2nd negative prices (-4.425) April 20 2020 at
1:14 pm CST (2 Contracts Traded)

CME - (QM) E-mini Crude Oil Chart - 1 min bar - 3rd negative prices (-7.000) April 20 2020 at
1:17 pm CST (10 Contracts Traded)

CME - (QM) E-mini Crude Oil Chart - 1 min bar - 4th negative prices (-8.925) April 20 2020 at
1:21 pm CST (6 Contracts Traded)

CME - (QM) E-mini Crude Oil Chart - 1 min bar - 5th negative prices (-28.475) April 20 2020 at 1:27 pm CST (1 Contract Traded)

CME - (QM) E-mini Crude Oil Chart - 1 min bar - Final negative prices (-37.175) April 20 2020 at 1:28 pm CST (expired at 1:30pm CST) (1 Contract Traded)
* Final CME Exchange Settlement Price was -37.62 - processed on Statements.

The above market action is exactly what we explained to our customers

From what we experienced, when Crude Oil (CL) May 2020 Contract - Traded Negative for the 1st time in History...that the market conditions are not normal once prices traded negative. The orders we researched for our customers, were either REJECTED by CME due to Velocity Logic Circuit Breaker or were REJECTED due to not safe market conditions > NO BID - NO OFFER.

Here is the link to CME E-Mini Crude Oil Futures - Contract Specs:
https://www.cmegroup.com/trading/energy/crude-oil/emini-crude-oil_contract_specifications.html

For more info on NYMEX WTI Crude Contract Trading on and around April 20, 2020, you can read the CFTC Interim Report: https://www.cftc.gov/PressRoom/PressReleases/8315-20

Ok so if they are cash-settled then negative prices don't even affect them. All they lost is trading losses which they would've incurred anyway if the trading platform allowed them to close the trade. Instant dismissal because there were no damages.

Pure ambulance-chasing! You fight them hard, AMP, fight them hard!! Seek punitive damages! This is a typical example of frivolous litigation just for a quick buck.

 

[eastern_warrior]

Ok so if they are cash-settled then negative prices don't even affect them. All they lost is trading losses which they would've incurred anyway if the trading platform allowed them to close the trade. Instant dismissal because there were no damages.

Pure ambulance-chasing! You fight them hard, AMP, fight them hard!! Seek punitive damages! This is a typical example of frivolous litigation just for a quick buck.

Agree. How much of a hit did AMP take. Is that public?

 

[tomtr27]

The Trader

 

[Overnight]

Was reading through the complaint a bit more thoroughly, and this just reeks!

"...AMP’s planned negligence could not have been foreseen by the Plaintiffs. AMP was alerted of the possibility of negative oil prices by the CME,..."

It wasn't "planned" negligence. Here, let me reword it for the answer to the complaint...

"...Plaintiffs' negligence could not have been foreseen by the Defendant. Plaintiffs were alerted of the possibility of negative oil prices by the CME,..."

Know the instrument you are trading. Sign up for the alerts, and you won't be in the dark. It's not like they (the plaintiffs) could NOT have known this information without the assistance of AMP.