tag:blogger.com,1999:blog-1708908742323002823.post7233094963445641031..comments2024-02-10T02:18:27.240-08:00Comments on Trader Dan's Market Views: Margin Call ProcessTrader Danhttp://www.blogger.com/profile/05484363461047659198noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-1708908742323002823.post-41043978198956362642011-11-07T09:06:06.083-08:002011-11-07T09:06:06.083-08:00Thanks Dan. That was very helpful.Thanks Dan. That was very helpful.pmbughttps://www.blogger.com/profile/04150993108293123266noreply@blogger.comtag:blogger.com,1999:blog-1708908742323002823.post-54634826703453931452011-11-06T07:36:34.619-08:002011-11-06T07:36:34.619-08:00Hey Dan found this on the internet
HERE'S TH...Hey Dan found this on the internet<br /><br /><br />HERE'S THE LATEST ON THE MAN FINANCIAL FAILURE<br /> <br />It seems to be good news...<br /> <br />This story is taking more form; my sources say the CME finished their audit and most funds have been accounted for. Some 15,500 retail accounts and 1.5 billion in assets were transferred out Friday night to other firms.<br /> <br />The claim will be an error took place at a low executive level; 1 Billion was transferred out of segregated (protected customers funds) into Man house accounts. The suspicion is this was used for a Man Financial position...short 3bn in Italian Bonds! <br /> <br />Jon Corzine claimed to be unaware of the position. Once he found this out, at approximately 3am last Monday, he personally got on phone and bought back the 3bn worth of Italian bonds they were short.<br /> <br />He then files for chapter 11, then stays on to work out of the trade until it settles Wednesday and Thursday, resigns Friday.<br /> <br />The problem was a huge bet using 30 to 1 leverage. I guess the bet was to offset his comment a few years back that MF Global was "too small to care about". The bet size changed all that!<br /> <br />The hope is this should be happy ending... unless regulators and lawyers tie up the funds in litigation and compliance.<br /> <br /> <br />This was a post on the internet by Larry Williams so it must be for real !!!rchttps://www.blogger.com/profile/13141994694673256947noreply@blogger.comtag:blogger.com,1999:blog-1708908742323002823.post-45777371847777756982011-11-05T20:24:52.498-07:002011-11-05T20:24:52.498-07:00Does the DME take monopoly money? I think it will ...Does the DME take monopoly money? I think it will have far more purchasing power than the FRN in the near future!Super Davehttps://www.blogger.com/profile/15618741438181082963noreply@blogger.comtag:blogger.com,1999:blog-1708908742323002823.post-39477555294764940932011-11-05T18:38:28.706-07:002011-11-05T18:38:28.706-07:00Wow!
if I understood it right it is more margin ca...Wow!<br />if I understood it right it is more margin calls when market opens, more liquidity pouring in for troubled accounts that can afford holding position and more accounts wiped out for those who cannot, is it a financial nuke higher in magnitude than 2008? is it the second domino after the first ( MF global ), the next few days and weeks are going to tell the story.Silver Eaglehttps://www.blogger.com/profile/15198426805338472740noreply@blogger.comtag:blogger.com,1999:blog-1708908742323002823.post-78716407848444131572011-11-05T16:51:35.588-07:002011-11-05T16:51:35.588-07:00Here's what I understand: CME can steal your ...Here's what I understand: CME can steal your money with a mouse click. But if they want to steal real gold and silver in a gun safe bolted two feet into rebar, CME will have to be good enough to get past two German Shepards and a 12 ga. If they're really that good, they can have it. That's what I understand.Tis Irish I Amhttps://www.blogger.com/profile/03195759583361066748noreply@blogger.comtag:blogger.com,1999:blog-1708908742323002823.post-37614419339527575172011-11-05T15:03:33.436-07:002011-11-05T15:03:33.436-07:00Thanks Dan for that easy to understand explanation...Thanks Dan for that easy to understand explanationJackie Robinsonhttps://www.blogger.com/profile/14306863365244898241noreply@blogger.comtag:blogger.com,1999:blog-1708908742323002823.post-8570239186830130622011-11-05T14:26:04.307-07:002011-11-05T14:26:04.307-07:00Thanks for your detailed explanation. It helped ne...Thanks for your detailed explanation. It helped newbies like me greatly. Now that the CME makes the initial margin and the maintenance margin the same, does it mean that even when a person went under on the maintenance margin and receive a margin call, now they have to wire less cash as before to get back to initial margin, meaning it becomes easier now to meet their margin call. Wouldn't this cause traders to be even more aggressive in terms of taking more risk? Volatility is going to spike up, wouldn't it? Please help me to understand.curiousmindhttps://www.blogger.com/profile/01666424655241738081noreply@blogger.comtag:blogger.com,1999:blog-1708908742323002823.post-51320846751926078622011-11-05T14:02:27.330-07:002011-11-05T14:02:27.330-07:00Nice description, Dan. What you describe is a nor...Nice description, Dan. What you describe is a normal market. Now when the Evil Empire conducts their takedown of the Gold market, you have a higher level of margin reduction which can wipe out a trader in a heartbeat.Riskhttps://www.blogger.com/profile/18410369470886032325noreply@blogger.com