1. So, it's manual monitoring ?? No ringing alarm bells or something ??
2. Very comforting to know that the customers are informed of any glitches.
3. This is a bit disturbing. The positions don't get squared off till 80% loss is reached ? What if the customer wants to clear them before that ? Also, in case of a technical issue, you may not be able to square off from your end too, because there is some technical glitch.
2. Very comforting to know that the customers are informed of any glitches.
3. This is a bit disturbing. The positions don't get squared off till 80% loss is reached ? What if the customer wants to clear them before that ? Also, in case of a technical issue, you may not be able to square off from your end too, because there is some technical glitch.
2. Thanks! This is done based on the seriousness of the situation.
3. In the sense, we have filters (It's a slab) through which we monitor all clients' positions. If a client loses 80% of his capital, all his open positions will be squared off. We can change this based on the volatility in the markets. Usually, most other brokers square off individual positions when they reach a certain limit but that too subjectively. We chose not to do that so that we can eliminate subjectivity altogether. From a risk management perspective, we are in no position to understand what a client's rationale for each trade is. Hence, it's best to choose a definitive rule-based approach.