EFT fraud? Specialist question.

GeoffTF

masonic said:

Wouldn't a spread bet make more sense, as then you could set a guaranteed stop loss?

As I have said, spread betting stop losses have a reputation for being guaranteed to trigger too. If you gamble, you will lose your shirt sooner or later. At £100k per pop, it will be sooner unless you are very wealthy.

masonic

GeoffTF said:

masonic said:

Wouldn't a spread bet make more sense, as then you could set a guaranteed stop loss?

As I have said, spread betting stop losses have a reputation for being guaranteed to trigger too. If you gamble, you will lose your shirt sooner or later. At £100k per pop, it will be sooner unless you are very wealthy.

True, not in any way advocating this behaviour, but in the comparable situation the stop loss would still have triggered, but wouldn't have resulted in the "22% loss".

GeoffTF

Trading derivatives on the US market would be a less crazy method of gambling on the S&P 500, but I am not going to give instructions on how to do that.

ChesterDog

Prism said:

debaura12 said:

masonic said:

debaura12 said:

Well I would like to see a better informed KIDD scenario - Perhaps you will entertain 

debaura buys ETF at 129, debaura places stop loss at 121, trade executes same day at 93 (despite share price never going under 129),  debaura looses £10,000.  Don’t be a putz like debaura and invest in an ETF unless you have a Phd in finance. 

It's not ETFs in general that are the problem. It's leveraged ETFs that are the problem. Out of interest, on which date and time did the trade execute?

I doubled my stake in it anyway 

Why risk it happening again? And surely you don't want to be trading it when the US markets are not open?

I think they mean they still made that amount of gain overall.

masonic

ChesterDog said:

Prism said:

debaura12 said:

masonic said:

debaura12 said:

Well I would like to see a better informed KIDD scenario - Perhaps you will entertain 

debaura buys ETF at 129, debaura places stop loss at 121, trade executes same day at 93 (despite share price never going under 129),  debaura looses £10,000.  Don’t be a putz like debaura and invest in an ETF unless you have a Phd in finance. 

It's not ETFs in general that are the problem. It's leveraged ETFs that are the problem. Out of interest, on which date and time did the trade execute?

I doubled my stake in it anyway 

Why risk it happening again? And surely you don't want to be trading it when the US markets are not open?

I think they mean they still made that amount of gain overall.

Yes, possible they meant that they doubled the investment, but to do so at a sell price of £92/share would mean they'd been holding since at least 2 years ago, when the return from S&P500 was at least 60%. Another problem with daily leveraged ETFs is they aren't suitable to be held for the medium to long term as they won't provide 3X the returns if held over weeks or months, but do have 3X the downside risk.