Traders Laboratory - View Single Post - Computer froze, lost $2800
View Single Post
  #2 (permalink)  
Old 12-16-2007, 01:15 AM
MC's Avatar
MC MC is offline
MC is half man, half market!

Trader Specs
 
Join Date: Sep 2007
Location: NY
Posts: 540
Thanks: 170
Thanked 47 Times in 36 Posts
Send a message via AIM to MC
Re: Computer froze, lost $2800

Quote:
View Post
A friend and I are newbies, he was trading Friday and his computer froze. He franticly called the broker, by the time they got him out he was down $2800. They said there is nothing they can do. Does he have any outs.
Nope, that's the risk we all take. Don't forget the added $20 most brokers charge to phone in an order.

Who is his broker? Most brokers keep the order serverside and if your connection or platform goes down they still execute assuming a hard stop was in place (IMO serverside with at least a worst case scenario hard stop in place is a great idea). Now if the broker has an outage or worse yet the exchange freezes, well then you MUST be prepared to hedge on another vehicle or a backup broker to offset any move against you. This should be part of any sound trading plan, how to hedge in an outage.

__________________
Price is simply the 2 way auctions method of advertisement. Volume measures the willingness of market participants to transact at the advertised price (AKA perceived value).
Reply With Quote