Lose 20K on trading 212 on one trade

Thrugelmir

snowqueen555 said:

platforms are prone to glitching, it isn't all explained away by general mechanics. 

When a 100,000 people all want Glastonbury tickets at the same time. Capacity constraints are inevitable. Systems aren't designed for torrential surges. 

snowqueen555

Thrugelmir said:

snowqueen555 said:

platforms are prone to glitching, it isn't all explained away by general mechanics. 

When a 100,000 people all want Glastonbury tickets at the same time. Capacity constraints are inevitable. Systems aren't designed for torrential surges. 

 I'd call it a glitch when a trade executes when the stock is halted an issue. Having stop losses not trigger s a pretty common issue so not surprised by that. Usually you would set several stops and not rely on the one.

wmb194

You need to find a list of actual, completed trades showing volume and prices as this should give you an idea of the bid and the offer prices at the times in question. Very high volume, particularly in the US, usually means tight spreads but it sounds like the prices were on a wild ride that day. The relevant stock exchange's website should have the data.

joshua5056

After Two years of back and forth, Trading 212 finally compensated me after Ombudsman's decision. 
Long story short, I complained to Financial Ombudsman's Service, firstly, an investigator to look the case, and investigator have made a decision that Trading 212 should compensate me for the losses, Trading 212 Agreed but only paid me a fraction of the damage caused. so I contacted Financial Ombudsman again, this time Ombudsman made an Final decision upheld my complaint, Shortly after Ombudsman's final decision, Trading 212 have paid me the full amount. 

eskbanker

joshua5056 said:

For any one interested, I have paste the Ombudsman's final decision below. Hopefully this also helps anyone who was wronged.

The link doesn't seem to work, but if you simply post the DRN number associated with the decision, it'll be published here, albeit maybe not quite yet if it's only just happened:

https://www.financial-ombudsman.org.uk/decisions-case-studies/ombudsman-decisions

joshua5056

eskbanker said:

joshua5056 said:

For any one interested, I have paste the Ombudsman's final decision below. Hopefully this also helps anyone who was wronged.

The link doesn't seem to work, but if you simply post the DRN number associated with the decision, it'll be published here, albeit maybe not quite yet if it's only just happened:

https://www.financial-ombudsman.org.uk/decisions-case-studies/ombudsman-decisions

thank u.  I have searched trading 212 ,there were a couple of other Trading 212 related decision, but this decision is not published yet. 

Exodi

joshua5056 said:

Ombudsman made an Final decision upheld my complaint, Shortly after Ombudsman's final decision, Trading 212 have paid me the full amount.

When you say the full amount, do you mean they refunded you the difference between the losses you actually incurred (~£15k) versus the losses you would have incurred had your stop loss executed without issue (~£3.5k) = £11.5kish?

While I am happy you managed to get your money back, in a way it's unfortunate because it may have been a good lesson about following the degenerate trading (gambling) advice on the WSB subreddit.

That said, even with the FOS's decision, you will still be down a few grand so I'm sure a lesson has been learned.

Deciding to go all in on a meme stock like Clover... yeah, I think you probably know that it wasn't the most prudent financial decision ever made...

joshua5056

Exodi said:

joshua5056 said:

Ombudsman made an Final decision upheld my complaint, Shortly after Ombudsman's final decision, Trading 212 have paid me the full amount.

When you say the full amount, do you mean they refunded you the difference between the losses you actually incurred (~£15k) versus the losses you would have incurred had your stop loss executed without issue (~£3.5k) = £11.5kish?

While I am happy you managed to get your money back, in a way it's unfortunate because it may have been a good lesson about following the degenerate trading (gambling) advice on the WSB subreddit.

That said, even with the FOS's decision, you will still be down a few grand so I'm sure a lesson has been learned.

Deciding to go all in on a meme stock like Clover... yeah, I think you probably know that it wasn't the most prudent financial decision ever made...

got about 13k back , the second trade was removed,  which is the extra 3120 shares sold at 16.61, and bought back at 21.87.  which is around 16k in US dollar. 
I haven't touched any of the meme stocks after that. definitely learned my lesson. 

YellowStarling

Reading back through this thread, I think you've been incredibly patient with all of the posters trying to confuse matters with "lessons about trading meme stocks, price volatility, etc.".  Whilst I don't disagree with all of that, that wasn't the point here.

Ultimately, Trading212 failed to ensure their system (whether their proprietary system or their connections to others') had the necessary controls in place to prevent a duplicate order that they then had to panic-reverse, at your cost.

It may be argued that the scale of the loss you nearly suffered is correlated to the choice of trading a meme stock but the reality is that you could have been trying to invoke a stop loss on any stock or fund, "safe" or otherwise, and the risk of the system enacting a duplicate sale in error could have been the same.

Ultimately, the system caused the initial loss, not your choice to trade meme stocks (the latter, if the system had worked, would have resulted in a far smaller loss around the price of the stop loss - the first sale at $16.99).

I'm glad you rightly got reimbursed for the money lost by their error.  I'm actually dismayed that it took two years and two FOS complaints to stop them getting away with it.

retiredbanker1

Joshua did the Ombudsman award you any statutory interest on the money you were kept waiting for?

There must be a grand (gross) of interest due?