__________________ Please, I'm not a daytrader, I'm an "Intraday Liquidity Provider" IF YOU HAVE TO ASK THAT, YOU SHOULD NOT BE TRADING OPTIONS!!
the whole story is retarded he was on fixed income salary at 140k its ridiculous, he should have been playing plasma pong whenever he was in his office, and surfing porn, like all the normal employees I see. Instead he takes on nightmarish risk with unlimited downside and literally zero benefits to him, he had no upside. Even if he closed out at a profit, he would still get fired and go to jail. This is amazingly stupid.
This story was certainly made up just to cover the Societe Generale's own trading mistakes. It is said that the trader played for a year and he constantly had to cover his tracks : so he never went into vacation and worked from 8:00 GMT to 20:00 GMT?(trading hours of the DAX futures). Yeah right... Oh well, still time to short the SocGen stock
I see the making of another Tom Cruise movie "The Firm - Part Deux" young buck chasing a piece of french tail gets caught up in a derivatives scam run by the banks own employees, turns into fall guy to protect his mistress.... Could work
"Now the bank appears to have lost Mr. Kerviel as well. Société Générale Chairman and Chief Executive Daniel Bouton said Thursday that the bank didn't know Mr. Kerviel's whereabouts, though it was still trying to mop up the path of destruction he had left behind. " So they have him, they don't, meanwhile they write down 15 billion in sub prime.
This is a good example of what can happen when we are not willing to admit that a trade is going wrong.
That's what I thought too, the whole story stinks. Anyway, this was one huge trade: "People close to the bank said the combined positions were worth about â¬50 billion." And the bank had to close this entire position on Monday. As the EUROSTOXX futures traded about 120 billion that day, almost half of the selling was this forced trade by SG! No wonder the market crashed. Now that the selling is done, what would that imply?
All the stops are pushed... But that tells you how much $$$ it takes to move the markets down 5-7%.... Did you guys see the latest quote in the article? they say their unwind wasn't responsible for the big price move. hahahah. yeah right.
Exactly, which is why the whole thing stinks, make a good movie though, thats probably why they suing him, don't want him to make a bundle on the movie.