We have to do it all the time around here, when newbs shit the bed. Remember, next time 1. Do not use your entire equity base in 1 trade. 2. Do not max out your leverage shorting a volatile penny stock 3. When your stop is hit, stick to it as opposed to hoping that the position will improve 4. If the market gives you an opportunity to get out of what was a huge loser as a smaller loser, take it, or at least lighten up! 5. Read the contract before you sign it and make yourself aware of your broker's options. However, if you are implementing proper risk controls, this should never be an issue. 6. Search ET for 'Beginners Help' and 'Risk Management' and read read read!! 7. Try not to make a complete ass of yourself by accidentally posting under different user names in the same thread, 4 posts apart. Hope this helps...
"if" pigs had wings, they would fly (anything that happened after you were liquidated is irrelevant - how do you know that you were not the only moron in this boat?..what if another idiot was 3x as overleveraged as you and was also forced to cover at the open doing even more damage to you??....are you going to sue the lack of liquidity? the other overleveraged customer? the market-makers? the president? me?)
There is no way you can win if you sued. Youâre wrong you had a position your account could not handle. What if the stock went up 5 bucks for the day? Would you be on here? Firms want to protect themselves. It does suck for you and I understand your point of view.
No chance of winning whatsoever. It's unfortunate that you took a big loss, but you have no case against the broker.
No it does not Mr IQ. This is the third or fourth time you've talked about 'risk management.' I should have realized but I didn't that you apparently read over stuff without taking the time to comprehend it and keep on repeating yourself like a broken record. But then you're no oridinary individual. You are one of a kind.
Thanks for understanding. Appreciate it. At least you can see my point of view which a lot of others can't
Like I said earlier. You don't have a life man except trying to find fault and argue with people here.
So... let's review. Everyone who posted here except one guy said you are at fault, have no recourse, and were practicing bad/nonexistent trade management. The one guy who said you should get a lawyer also said that you have no legal recourse and that you mismanaged the trade (which is obvious to everyone including you). So everyone thinks you're wrong. Hmmm.... Like I said earlier, just stop for the night, man. You are in another losing trade and clearly, you don't know how to get out and cut your losses. You just keep posting here and new people keep showing up and telling you you're at fault. Stop loss is hit. Close the position, akeyla.
In the interest of brevity, go back and read my earlier post. I forgot, you don't comprehend things that you read.
You said you: were short 25,000 shares. you received a "regular maintenance call". werre down $37K in the position. had an $80K surplus. Was this all at the same time? You also stated the broker only covered 20,000 shares, leaving 5,000 shares. What was the amount of the "regular maintenance call? How much more than $80K, Something is missing here. Also, the broker only liquidated 20,000 shares out of 25,000 leaving you net short 5,000 shares. Forgetting the number confusion as to the margin call, it seems to me that depending on the actual margin agreement you signed, the broker merely liquidated sufficient to bring you into compliance with the margin agreement. If so, I cannot see how legal action would benefit you. Jack