Fail to pay brokerage

[ussr_1991]

Who knows what happen if cannot pay for broker such as IOCBC?

Basically this was what happened:
1) I got $50k trading limit on iOCBC account

2) Ytd, went in $9k of it on Xiaomi Short DLC @ 0.061 (Because that was the moment I saw Xiaomi price start dropping) with 150,000 units

3) Within an hour or 2, I tried to DCA by entering 450,000 on same Xiaomi Short DLC @ 0.054

4) And also at last enter another final set of 200,000 units on same Xiaomi Short DLC @ 0.045

5) Today other than pre-trading price where the price rose back to 0.05 and I thought can wait a longer to breakeven. Damn, wrong decision. It go up to a prak of 11% (Sustain paper 55% loss)

6) Tried to stop loss, by selling first batch of 200,000 at 0.026 (The lowest point was 0.023).

7) By late afternoon, sell the second batch of 100,000 at 0.035 (The highest point was 0.037, after I sold but it dropped again)

8) Both of these already sustained $7k loss


So now I am damn worried what to do with the remaining 500,000 units which may sustain similar loss. If I can control it within $4k loss would be fine with me but what if I don’t?

 

[ashethen]

Wait for lawyer letter lor

Posted from PCWX using SM-N960F

 

[fatangel]

You mean you have no money to pay?
Why you buy with no money in the first place?

 

[ussr_1991]

You mean you have no money to pay?
Why you buy with no money in the first place?

Because the trading limit is that high but actual GIRO is only T+2

Next monday is like T+2 already, and to control the loss to another $4k or so will mean the price returns to 0.045 from 0.035 (10 bids), it is like asking Xiaomi to drop by $0.50HKD which is not impossible but hard

 

[reddevil0728]

Good luck.

 

[klanddt]

One of the ways is get a bridging loan to buy time and try to double down to win back the money?

But this is risky move is like make or break. You may end up with more debt than you can cushion.

The other option is to borrow money from your mom or dad to help so then you get some breathing air and find ways to recoup the losses again.

But I am sure the Broker will go after you either way to settle.

Because the trading limit is that high but actual GIRO is only T+2

Next monday is like T+2 already, and to control the loss to another $4k or so will mean the price returns to 0.045 from 0.035 (10 bids), it is like asking Xiaomi to drop by $0.50HKD which is not impossible but hard

 

[3dfxplayer]

You have no money to pay for the contract or contra loss? Just cut your losses by T+2 if its the former, good luck if its the latter, they will sue you after a few weeks of hounding you for payment.

 

[twkacc]

got money pay anot. just cut loss and move on

if no money to pay, why even buy it and whats more buying CFD. ask ur parents for money ba

 

[klanddt]

By the way it looks like he/she invested in DLCs not CFDs

got money pay anot. just cut loss and move on

if no money to pay, why even buy it and whats more buying CFD. ask ur parents for money ba

 

[goldnut]

got money pay anot. just cut loss and move on

if no money to pay, why even buy it and whats more buying CFD. ask ur parents for money ba

He didn't buy. He shorted it and the price went up. Now OCBC sending ah long to give him free chicken

 

[ussr_1991]

You have no money to pay for the contract or contra loss? Just cut your losses by T+2 if its the former, good luck if its the latter, they will sue you after a few weeks of hounding you for payment.

I have neither the means to pay for the contract (About $43k, coz I left about $7k limit unused) nor the contra loss (The initial $7k loss still can absorb by some earlier profits but I really cant sell the next 500,000 units at the 0.035 price)



Coz I saw the P/L list, where total buy was about $42600, total sell (Of 300k / total 800k units) is $8640. In order not to sustain further loss than this $7k, I need the price to be 0.053 (18 bids gain which means today closing of HKD 22.50 needs to drop until HKD 20.15 to have a chance excluding the bid-ask spread factor which is like 47 bids) which giving 1 or 2 more days is quite unrealisitc.

Assuming that I sold all remaining 500,000 units at 0.035, I am looking at sell value of 17500, hence $42600 - $8640 - $17500 = $16460


For which I cannot pay for an extra $17k contra loss as well

 

[IronMan123]

Who knows what happen if cannot pay for broker such as IOCBC?

Basically this was what happened:
1) I got $50k trading limit on iOCBC account

2) Ytd, went in $9k of it on Xiaomi Short DLC @ 0.061 (Because that was the moment I saw Xiaomi price start dropping) with 150,000 units

3) Within an hour or 2, I tried to DCA by entering 450,000 on same Xiaomi Short DLC @ 0.054

4) And also at last enter another final set of 200,000 units on same Xiaomi Short DLC @ 0.045

5) Today other than pre-trading price where the price rose back to 0.05 and I thought can wait a longer to breakeven. Damn, wrong decision. It go up to a prak of 11% (Sustain paper 55% loss)

6) Tried to stop loss, by selling first batch of 200,000 at 0.026 (The lowest point was 0.023).

7) By late afternoon, sell the second batch of 100,000 at 0.035 (The highest point was 0.037, after I sold but it dropped again)

8) Both of these already sustained $7k loss


So now I am damn worried what to do with the remaining 500,000 units which may sustain similar loss. If I can control it within $4k loss would be fine with me but what if I don’t?

Why short Xiaomi in the first place? It will include in the HSI later. Wrong decision...

 

[ussr_1991]

Why short Xiaomi in the first place? It will include in the HSI later. Wrong decision...

Haizzz. Regret but what to do


Put it this way, I have actually made $6k profit from DLC by just one Meituan Long trade in a day (Buy at $0.90 within the day also dropped to as low as $0.785 but still managed to DCA at 0.8x with a far smaller unit so that it was about 0.89x including cost), I thought selling at 0.92 or 0.95 would be good enough but luckily got time to change it to 1.005 and made $6k in just one day)

But there again, my idea was like wth tech stocks are like keep hitting analyst target price and hence tried to change the strategy


In fact the remaining $7k of limit i didnt use to short Xiaomi, was used to long Xiaomi at $0.94, sold at 1.01 netting close to $500. And I subsequently use the $12k limit to long Meituan again, but 11000 units of 15000 units are at 1.10 and managed to average to mere 1.08, but Meituan drop to 0.95 by closing. If I can sell it at 1.15 in next day or 2, I should able to net another k or so but still far too less to deal with potentially $20k loss from this Xiaomi short

 

[twkacc]

By the way it looks like he/she invested in DLCs not CFDs

yeah u are right DLC. i got it mixed up.

 

[twkacc]

Haizzz. Regret but what to do


Put it this way, I have actually made $6k profit from DLC by just one Meituan Long trade in a day (Buy at $0.90 within the day also dropped to as low as $0.785 but still managed to DCA at 0.8x with a far smaller unit so that it was about 0.89x including cost), I thought selling at 0.92 or 0.95 would be good enough but luckily got time to change it to 1.005 and made $6k in just one day)

But there again, my idea was like wth tech stocks are like keep hitting analyst target price and hence tried to change the strategy


In fact the remaining $7k of limit i didnt use to short Xiaomi, was used to long Xiaomi at $0.94, sold at 1.01 netting close to $500. And I subsequently use the $12k limit to long Meituan again, but 11000 units of 15000 units are at 1.10 and managed to average to mere 1.08, but Meituan drop to 0.95 by closing. If I can sell it at 1.15 in next day or 2, I should able to net another k or so but still far too less to deal with potentially $20k loss from this Xiaomi short

bro, please learn more about risk management.

u definitely bought way more than you can afford to lose.
on top of the short xiaomi position, u are still on paper loss for meituan DLC which is near contra date?

 

[ussr_1991]

bro, please learn more about risk management.

u definitely bought way more than you can afford to lose.
on top of the short xiaomi position, u are still on paper loss for meituan DLC which is near contra date?

The Meituan Long is today position, still got 2 days but well......

 

[Galaxy77]

Wish you good luck

 

[Lycanboiboi]

Wow, this is like those "Robinhood user blows up account" posts on WSB reddit, but with a local twist.

The difference is that those are usually immature, greedy and arrogant teens who think they're smarter than the market and treat it like a casino. From your username i'm just assuming you're 29 and it's plausible to think that you have a wife and a very young child. I really hope that's not the case, because these kind of things can destroy lives and break families apart.

"Only gamble with money you can afford to lose". Whatever it is, i hope you learn your lesson. If really can't pay, best is borrow from friends and family. Don't be foolish and try to win it back in the market or borrow from illegal sources etc. It will just be a downward spiral.

All the best.

 

[ussr_1991]

Wow, this is like those "Robinhood user blows up account" posts on WSB reddit, but with a local twist.

The difference is that those are usually immature, greedy and arrogant teens who think they're smarter than the market and treat it like a casino. From your username i'm just assuming you're 29 and it's plausible to think that you have a wife and a very young child. I really hope that's not the case, because these kind of things can destroy lives and break families apart.

"Only gamble with money you can afford to lose". Whatever it is, i hope you learn your lesson. If really can't pay, best is borrow from friends and family. Don't be foolish and try to win it back in the market or borrow from illegal sources etc. It will just be a downward spiral.

All the best.

Indeed, I am 29. But no wife no kids.

Nbz imagine today 50k limit go Xiaomi long, should be able to take 30k or so in one day.


And that means I have 5 years worth of DCP amount sia >.<

 

[ussr_1991]

Eh edit, I calculated wrongly, if I can sell it at 0.035, I will take $9.5k loss, not $17k as I would have double caclulated the earlier $7k loss twice.


But $9k..... Thats what phv drivers get.........Each bid is a $500 stake for me