Margin Calls: How many trading accounts got wiped out?

Discussion in 'Trading' started by akeserla, May 6, 2010.

  1. S2007S

    S2007S


    Tomorrow there might be an orderly sell off where the dow actually closes calmly below 10,000!!!
     
    #11     May 6, 2010
  2. The Reactor 4 Steam valve purged and you had a scram at the financial reactor today. Lucky for us the rods were able to drop down fast enough to moderate this sudden out of control fission reaction.
     
    #12     May 6, 2010
  3. bone

    bone

    I took a body count amongst clients - especially the equity pairs traders; they actually made some money. Maybe just dumb luck without PG or MMM signals. Since we trade divergence and not convergence, if there was any lead time (say ten or fifteen minutes) at all with the price action of the stock they would have most likely been flat or even short the thing.
     
    #13     May 6, 2010
  4. All of my spreads would have converged, had I sat through the carnage. The problem was that some legs moved so aggressively against others that it was hard to tell what was going on. I figured that most of my losses were tiny, so I cut everything and had a long in VXX.

    The movement was so asymmetric, it was almost luck of the draw. Some spreads hedged each other quite nicely. Others were good over-time, but short term dislocations were so extreme it was worrisome.
     
    #14     May 6, 2010
  5. It's never a good time to be short vega. Over the course of time, death toll = 100%. Only a matter of time before these days or even parts of days come along. Margin liquidations always happen in the troughs... tapes may recover, naked shorts don't
     
    #15     May 6, 2010
  6. Which exchange?
     
    #16     May 6, 2010

  7. And WHICH camp do YOU fall into?
     
    #17     May 6, 2010
  8. From the posts I see here and on the net, 99% are in one camp.

    Guess which.
     
    #18     May 8, 2010
  9. PJT

    PJT




    Fema Camp
     
    #19     May 8, 2010
  10. Johno

    Johno

    +1 :)
     
    #20     May 8, 2010