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Author Topic: Day trader tries out ‘demo’ platform, ends up with actual $5 billion position  (Read 57 times)

FXshooting

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This day trader also scored a $12 million profit — and is suing a brokerage in a bid to get his hands on it



Sacré bleu — this trade’s for real?!

Day traders can do the darndest things.

This week has provided the tale of a huge demo-trading platform mixup, and it’s on a par with the story of the guy who launched a GoFundMe drive after a short bet went horribly wrong.

Harouna Traoré was making trades with Valbury Capital last summer — on a try-out version of the British brokerage’s platform, he thought. But the French day trader discovered that in fact, he had been placing actual orders worth 1 billion euros ($1.2 billion), according to a Financial Times report.

Traoré, who opened an account with $23,000, found himself in the hole by more than $1 million. But he managed to turn that real loss into an actual profit of more than €10 million ($12 million), as he built up a $5 billion position in U.S. stock futures, the FT report on Thursday said.

Yet Traoré is not necessarily on easy street after his successful bets. Instead, he is locked in a legal battle with Valbury over the roughly $12 million gain — an amount about equal to the U.K.-based brokerage’s entire annual revenue.

Valbury told him it had treated the trades as an error because Traoré had thought he was using a demo platform. The brokerage also told him that he had exceeded his trading limits, according to court filings that the FT examined.

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Early Thursday, U.S. equity futures ESU8, -0.08% YMU8, -0.35% were dropping, putting the Dow Jones Industrial Average DJIA, -0.33% on track for its eighth down session in a row. The S&P 500 SPX, -0.10% and Nasdaq COMP, +0.05% look set for losses after gaining Wednesday.


Ref.Victor Reklaitis
www.marketwatch.com/story/day-trader-tries-out-demo-platform-ends-up-with-actual-5-billion-position-2018-06-21

« Last Edit: June 24, 2018, 11:53:03 am by FXshooting »

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