Do stock brokers monitor client accounts losses ?

Discussion in 'Risk Management' started by wic2021californiaxp, Jul 26, 2021.

  1. JSOP

    JSOP

    My utmost sympathy to your screen. I hope you gave it a good wash. :)
     
    #11     Jul 26, 2021
    Overnight likes this.
  2. JSOP

    JSOP

    As long as you don't lose any of the broker's money, the broker couldn't give a rat's a$$ how much you lost very much like a casino wouldn't care how much you lost playing their Russian Roulette.
     
    #12     Jul 26, 2021
  3. Of course brokers monitor client losses. They will call you if you in in violation of margin requirements
     
    #13     Jul 27, 2021
  4. Overnight

    Overnight

    *spits beverage at JSOP's screen* That's funny.
     
    #14     Jul 27, 2021
  5. JSOP

    JSOP

    Now you need to come over and clean my screen too.
     
    #15     Jul 28, 2021
  6. Many brokers do in fact monitor accounts for losses. As other posters have said, they won't stop you as long as margin is not involved. Here is an example letter Fidelity sends out when an account loses a substantial amount in a short period of time:

    upload_2021-7-28_9-58-19.png
     
    #16     Jul 28, 2021
  7. Outside of margin, looks like they care because they want to hook you up with managed money and give you "advise" for a fee LOL.
     
    #17     Aug 4, 2021
  8. it all depends on the broker's approach to their work, many often monitor all the transactions of their traders, and the general work of each trader
     
    #18     Aug 5, 2021