who is liable for a loss due to a software problem ?

Discussion in 'Trading Software' started by Wallace, Aug 1, 2011.

are They liable ?

  1. yes

    2 vote(s)
  2. no

    46 vote(s)
  1. do you agree that chart/order entry program authors, brokers' usually only ? account
    software, and data feed providers including exchanges are liable for any and all losses
    that are a direct result of a problem with Their software ?
  2. the1


    Generally the trader is liable for that type of risk. It's in the contract you sign when you open an account.
  3. Have you bothered to read all those agreements you agree to when you open an account? If not, your answer may be right there.
  4. Check the fine print...I've never seen a software disclosure (release) that admitted to any liability for failure of the product.
  5. LeeD


    I agree with other posters. The only way you can nail down software or datafeed vendors is if you can prove a clear malice (or, perhaps, misselling) on their part. Otherwise, they are normally pretty much covered.
  6. you are liable for accidental profit either,that i was told once by broker:D
  7. Bob111


    don't bother..skip it,cause i know what's in it. basically it says-no matter what-it's all your fault. no one would be liable for your losses. not data vendors,not software(cause they normally say-use it as is,without any warranty or accuracy). same for broker-we not guarantee your execution. same for internet provider-we will try our best, however..we cannot guarantee 100% of the time. and so on..
  8. Virtually all software comes with a license declaring the software is unfit for any activity whatsoever and the user takes all responsibility for trying to do something useful with it.
  9. LeeD


    Very good point. Im fat, some software comes with extra exclusions. For exmple Java machines come with a disclaimer they should not be used in controlling nuclear reactors and doing so would break the license terms.

    Imagine auto-trading software where the license terms indirectly ban users from using software in live trading...
  10. My question was actually the answer, but thanks for your clarification. Sometimes it's good for someone to answer their own question.

    #10     Aug 1, 2011