Does this mean potential big (financial) trouble for AMP ? https://www.desilvalawoffices.com/n...trading-amp-global-clearing-llc-and-amp-futu/ https://www.desilvalawoffices.com/images/Amp-Class-Action-Complaint-Dkt.-1.pdf
Mmm, not so sure. There's a couple of problems with it that stick out in my mind. A.) As a trader, I was cognizant of the issue of CL potentially going negative. AMP cannot bear the full responsibility for all the traders using their service. The standard risk-disclaimer applies. In fact, when I saw the price pegged at $0.01 on my platform, I was thinking of buying some CL. I did not however, because everything was moving too fast and I was reeling from not following my plan in the equity indices. B.) AMP could counter-sue the CME on this for failing to maintain it's low-level trading limits, as stated on their information page on that date...$0.01 was the low limit as per the CME on 4/20. That is probably one of the reasons their platforms had that same level as the lowest on charts. I was there that day, I saw it. C.) AMP has been through lawsuits before, and came out ahead. It will be a headache, but AMP will get through it.
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.
100% agree. I should add it depends on the service offered by the broker. Covering negative balances or guaranteeing stops regardless of market and tech faults must necessarily cost extra, if you don't pay for that then owe up when those things happen.
P.S. I ain't joking, @Baron Here's some cookies I got for X-Mas. I put a standard refillable pen in there to show comparative size. Hehe! Maybe a cookie trade? Big as your face!
I read the plaintiff’s lawsuit, and it would appear that they chose to sit on long positions marking wildly against them and didn’t even consider liquidating their stinkers until they saw a sustained and ongoing Zero price print. So for the record, the first ever zero oil price print didn’t appear on April 20th until 2:08 pm. So basically they had 20 hours and 8 minutes prior to liquidate their losers. Globex opened at 6:00 Eastern Sunday.