Margin Call Lawsuits Expected to Spike

Discussion in 'Wall St. News' started by guru, Apr 3, 2020.

  1. zdreg

    zdreg

    NewTraderAdventure said:
    they prob did him a favor

    can surely buy them back cheaper now
    Take his remark seriously. Obvious he does NOT trade with Interactive Brokers which liquidates your position and is a serious place to trade and protects both the firm and the customer by closing his position.
     
    #11     Apr 3, 2020
  2. tsfx

    tsfx

    What ? Pay taxes on what ? Lost money ?

    I'm european, taxes apply on money earned only.
     
    #12     Apr 3, 2020
  3. RedDuke

    RedDuke

    Imagine you earned in 2019 and never withdrew cash to set aside to pay taxes. Then lost whole account in 2020. You still owe 2019 tax. Has happened to people.
     
    #13     Apr 3, 2020
  4. zdreg

    zdreg

    FYI In Europe taxes are not uniform from country to country.
    ----------------
    pss I am sure most Europeans would not say I am European unless he is trying to hide something,
     
    Last edited: Apr 3, 2020
    #14     Apr 3, 2020
  5. It´s common malpractice at Tier1.
     
    #15     Apr 3, 2020
  6. Did you ever work for a Tier1 desk? Obviously not.....
     
    #16     Apr 3, 2020
  7. wrbtrader

    wrbtrader

    I was born in Europe (France)...I don't think I've ever said to anyone I'm "European" nor do I remember any of my friends / relatives in Europe doing the same.

    Yet, I grew up in U.S. now living in Canada. Called a half breed once when I was in high school but then got kicked out of school for knocking out 4 teeth of the kid that called me that.

    Parents then put me in private school and got called "half breed" again. Smart this time from my 1st experience...didn't knock out someone's teeth but instead slept with his girlfriend a few times without him knowing it.

    :D :rolleyes: :wtf:

    wrbtrader

    https://en.wikipedia.org/wiki/Half-breed
     
    #17     Apr 3, 2020
  8. MKTrader

    MKTrader

    100%. I've been margin called once. It was dumb, I used too much leverage and tried to pick up too many dimes in front of a speeding train. I paid for it and moved on. The idea of a lawsuit never crossed my mind.

    The only scenario I can justify a retail trader/investor suing is if it's a managed account and the risks and normal disclosures weren't provided. Even then, the account owner should at least Google terms like "margin," "options," "futures," "forex," "cryptocurrencies," etc. and realize the risk they're taking.
     
    #18     Apr 3, 2020
    jys78 and ajacobson like this.
  9. schizo

    schizo

    Okay, here's an example that will definitely result in a lawsuit. My stock (or any other instrument like futures, forex, etc) tanked and my account accordingly went down to $0. At this point, my broker MUST liquidate all my position. If the broker, however, did not sell my position and my account dips into the negative (say, $10,000) AND THEY DEMAND I ADD MORE FUND to bring my account back up to $0, then you can bet I will sue their ass. And I will win.
     
    #19     Apr 3, 2020
  10. Overnight

    Overnight

    To cite your specific example, has a stock ever gone negative?
     
    #20     Apr 3, 2020