NoRhino
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I recently have started clearing through AMP GLOBAL CLEARING and I spread trade. I suffered a $1300 AUD loss one day because my account was restricting me with the size I could place (not through lack of funds) so it made me only able to enter one side of the spread and then I couldn't get flat on this position that immediately went offside. It took 12 hours for them to get me flat and they show no signs of wanting to cover any of the losses.
Please carry on reading to see exactly what happened and if you know anything that can help me, please comment.
One of the emails I sent them, which explained what had happened:
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I executed a short position on the 10 year Australian Bond 'XT 03-12'. My strategy is to hedge my position on the 3 year 'YT 03-12' which you can clearly see from my trades. This time I missed my hedge and the 10 year had already reached another price I was wanting to sell, so I sold the 10 year (so I am now short 2 lots) and immediately executed the correct size to hedge my short positions. Unfortunately an error message is generated and consequently I cannot enter a long position on the 3 year. I quickly email trade desk as I just used my credit on my mobile talking to the trade desk and I had to think how I should handle this short position... I am quickly in a decent sized loss and I quickly try to exit the position. I click buy on the bid (rather than lifting the offer) as it's a clear opportunity to get out at a lower price, the offer starts to disappear and without hesitation I lift the offer. I get another error message and quickly conclude my working order could be limiting my account further. I remove the working order and try again to exit the market with 2 lots a second time. I get the same error message and quickly change my size to 1 lot and exit the market (which has now traded higher, as this move was pretty aggressive for the 10 year and not slow like it usually is). I am now short 1 lot and I cannot lift the offer to flatten my account. I run to the local shops (minutes away), top up in about 15 seconds and call the trade desk, I give clear orders to them and it was 12 hours later when they were able to get me out of the short position.
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After days of struggling to get any reply via phone or email. My broker contacts them for me and says:
"I spoke with the owner of AMP and the trade desk and they said the price difference from the time you called to when they got you out was only 4 ticks difference."
My reply:
Thank you for doing that. But you know I lost money by not being able to hedge my position. Almost instantly I am suffering a loss from what should be happening. Then I can't put working orders in and buy the market to get out, and buying market is the only way to get flat. I can't phone them instantly because I don't know the extent of the limitations instantly. I have to firstly realize I can't hedge myself, then realize I can't exit my trade, that I can only exit 1 lot if I clear all my working orders. During this natural progression of thoughts the market has put me in a loss and then add on the loss caused by the delay of getting me flat once I rang them up. Everybody would have lost money in this situation, so why should I suffer a loss because they made a mistake.
now waiting for replies for various people (the loss occurred 27/01/12)
So.....
Does anyone know where I stand on this and if they have the right to just refund me part of the loss? The loss ended up being about 12-13% of my account size and only happened because of tight restrictions at the wrong time. I was told by my broker (not the clearing house who is the one responsible) that my account had limitations on margin. Note: not limitations because of funds, limitations because the account settings being incorrect.
Any advice is welcome right now.
Cheers.
Please carry on reading to see exactly what happened and if you know anything that can help me, please comment.
One of the emails I sent them, which explained what had happened:
----
I executed a short position on the 10 year Australian Bond 'XT 03-12'. My strategy is to hedge my position on the 3 year 'YT 03-12' which you can clearly see from my trades. This time I missed my hedge and the 10 year had already reached another price I was wanting to sell, so I sold the 10 year (so I am now short 2 lots) and immediately executed the correct size to hedge my short positions. Unfortunately an error message is generated and consequently I cannot enter a long position on the 3 year. I quickly email trade desk as I just used my credit on my mobile talking to the trade desk and I had to think how I should handle this short position... I am quickly in a decent sized loss and I quickly try to exit the position. I click buy on the bid (rather than lifting the offer) as it's a clear opportunity to get out at a lower price, the offer starts to disappear and without hesitation I lift the offer. I get another error message and quickly conclude my working order could be limiting my account further. I remove the working order and try again to exit the market with 2 lots a second time. I get the same error message and quickly change my size to 1 lot and exit the market (which has now traded higher, as this move was pretty aggressive for the 10 year and not slow like it usually is). I am now short 1 lot and I cannot lift the offer to flatten my account. I run to the local shops (minutes away), top up in about 15 seconds and call the trade desk, I give clear orders to them and it was 12 hours later when they were able to get me out of the short position.
----
After days of struggling to get any reply via phone or email. My broker contacts them for me and says:
"I spoke with the owner of AMP and the trade desk and they said the price difference from the time you called to when they got you out was only 4 ticks difference."
My reply:
Thank you for doing that. But you know I lost money by not being able to hedge my position. Almost instantly I am suffering a loss from what should be happening. Then I can't put working orders in and buy the market to get out, and buying market is the only way to get flat. I can't phone them instantly because I don't know the extent of the limitations instantly. I have to firstly realize I can't hedge myself, then realize I can't exit my trade, that I can only exit 1 lot if I clear all my working orders. During this natural progression of thoughts the market has put me in a loss and then add on the loss caused by the delay of getting me flat once I rang them up. Everybody would have lost money in this situation, so why should I suffer a loss because they made a mistake.
now waiting for replies for various people (the loss occurred 27/01/12)
So.....
Does anyone know where I stand on this and if they have the right to just refund me part of the loss? The loss ended up being about 12-13% of my account size and only happened because of tight restrictions at the wrong time. I was told by my broker (not the clearing house who is the one responsible) that my account had limitations on margin. Note: not limitations because of funds, limitations because the account settings being incorrect.
Any advice is welcome right now.
Cheers.
Thinkorswim for fairly sorting out a trading adventure I once had with a similar outcome to this when they easily could have shrugged me off. 
