Ironbeam are the futures broking house. You'd have thought that they'd get something so basic as initial margin correct. I wonder what CFTC/NFA thinks about all this.
Hard to believe that Ironbeam would actually go after this guy given all the negative publicity they are going to get. Take the hit -fix your risk parameters and move on. Or get your 100+K and receive all this bad publicity. Why would any reputable trader have an account with these idiots? The safety of your funds is paramount. I feel confident with a firm like IBKR.
"The Ironbeam clerk who set up Evert’s account failed “to enable default risk procedures” or “put any trading limitations” on the account, the opinion said." I guess the word failed does not imply negligence by the firm?
the craigslist trader is a genius. Take someone else's credit and take two opposite positions, one will work out, the one that doesn't isn't the trader's debt anyway. Risk free profit as long as you can find two suckers to give you 10k+their credit.
Exactly what I was wondering. In any case, the guy is an idiot if he signed over access to his account to someone he never met. Hate to say it but he deserves what he gets.
That Craigslist trader is a real POS! He suckered clients in using SIM generated performance reports & lost over $550,000. Granted, the clients were foolish - blinded by greed. Your broker is not responsible for protecting you from losses beyond the maint margin - that's on you & it's stated in the disclaimers your broker has you sign off on. https://www.nwestiowa.com/news/alto...cle_a488c9d2-fdb1-11e9-be62-5fbdad0919ba.html
Nice story but that didn’t happen. Broker would have been on the hook then and the trader in jail - what you’re describing is like 57 ways of felony illegal.