I too think that's what nabbed him. For those who are behind the curve, it's called SPPPPOOOOOOOOOFFFFFFFING.
I don't think its technically possible to spoof the ES manually, that can only be done by an algo. So thats definitely not it. Nobody from the cftc is going to come calling about an at home manual trader spoofing the es. lol. Still doesn't explain the non explanation. So like I said, part of the story is missing..
That's not the point. AMP provides very generous daytrade margins. But the FCM (in this case AMP) has to account for initial margins on all positions they hold in the traders' steads. And IIRC as @Robert Morse explained to me some time ago, the broker must put up 8% of the customer's open positions in margin from their own funds? Or something like that? (Help me out on that one again, OMM). So basically, if he had -6 million in open trade equity (the initial margin, assuming all positions are at BE) and only 3 million in his account, AMP could put up 8% of the 6 million, or $480,000. That brings him down to 5.2 million required, minus the 3 million in cash, so 2.2 million extra bux required. He doesn't have it, and BOOM! Risk computer goes all HAL9000 and shit. Dave, and the pod-bay doors.
How ridiculous is this? Note: DayTrading margins are twice the displayed amount for account balances exceeding $100K. So on $100K I can daytrade 200 lots? 20pt dot shot and I am debit $100K.
very unlikely no broker would close an account for that reason unless they were flagged by the exchange. if that was the case he would have gotten warnings prior to getting the boot. from a risk perspective getting rid of his account was the right move. you cant have tiny day trading margins and maintain disproportionately large single accounts. it only works if you have many small accounts churning micros all day long.
No, it is worse than that. On NQ for example, with 100K you can trade 100 lots, since the daytrade margin will be $1000 per lot. When you drop your account to $99K, you can trade 198 lots, as the daytrade margin is $500 per lot. How's that for risk management? I think that is part of the problem the OP had. He never considered the true risk and the exchange minimums, rather than the AMP minimums. (This is assuming the NQ day margin is still $500 per lot below $100K)
Lmfao. this entire thread is silly. he doesnt have 3 million with them and they cant discuss it. he is obviously a piker and they cut him loose because he started figuring out someway to game the system or he was an asshole to the order desk. nothing wrong with 500 10 or no margin. most hft dont even have margin but they have credit and track records. what a whiney little bitch this guy is about Amp. ibhad an account there before and it was fine. it is a discount broker dont expect full service. sure go to in where a micro is what 2000 and a mini 12000 and they blew up with 90 million in losses in negative oil clients couldnt trade. dont believe everything you read online. they cannot discuss why they closed but based on this idiots post he was lucky to have 3000 dollars. no one acts like this guy.