But i am not referring to order routing nor order placement delay that happened.
Every Broker will have a real time risk monitoring system ... When 20 k margin account is showing 80 k loss, it should sound like a ambulance na....
My reference here is to the fault which falls purely under the ambit of a brokers risk management system.
That was my main point and it could be risky for all.
@TP, Actually Glitches happen. But how RMS deals such glitches actually makes a difference to the broker & customer. Beyond a certain limit of loss, broker can't able to refund the customers but brokers can go bankrupt!
What If the trading capital was 5cr and the loss 4 times = 20Cr? Or same things occurred in multiples big account together? Then few crores of cumulative refund would not be not so easy!
Brokers can go bankrupt for such BIG RMS mistake. Then there will be no value left for the whole hard work and the sincere effort for so many years to build a good brokerage business.
So, RKSV must be careful, identify and fix up the what actually goes wrong in the backend. Why system stopped monitoring MTM when both the target and stop executed(such things are rare but not uncommon, can happen again in the volatile market).
It's good that capital was only about 20k, not 20 Cr. It's good to learn from mistake too.