saw the interview of one MO guy , he said they have to recover 80 crore from their clients …
if you trade with 20L and above , they will give good brokearge … i started with 5rs per lot and they increased it to 6rs and then to 8rs , citing mkt conditions…
also these days getting only 10x leverage on normal days and 10-20x on expiry days …
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Hi Nitin.
Thanks a lot for providing us such a great platform!
In the context of this crude incident, if such a thing happens in equities, then is there a possibility that the broker would sell the securities in the client’s account without even asking him? Think this has happened around 1992 and people have gone to court and still haven’t recovered their money.
Please shed some light on this.
@nithin
Any idea about High Court outcome? / ETA?
If it comes in favour of the victims then how the money would be recovered back…Your opinion plz.
Thanks
A broker can’t sell securities in a client account, unless the client owes money to broker. That can’t really happen unless the broker decides to do a fraud. If it s a fraud, yeah, there is investor protection fund to cover to an extent.
Hearing on monday. Now that the payouts are already done, there is nothing much that can be done. The best case outcome is that the product specifications for MCX crude changes to ensure that it can’t go to negative and all.
What if client didn’t provide POA to broker. I guess then it will not be tenable for broker to sell client security even if client owes money to him, yes broker can pursue other legal actions.
having a leveraged contract trading based on a International exchange & not allowing trading in India till that exchange closing time is some what an issue . We have to have Globex kind of 24 hours trading .
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MCX April crude oil futures row | Brokers discourage trade via exchange, seek margin of 200-400%
Moneycontrol has learnt that brokers are only allowing clients to square off their existing positions. In cases where clients are initiating trades, brokers are seeking 200-400 percent margin.
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Good will commodiyt is asking margin 3L + if you are carrying overnight position for crude oil 
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Yeah. But the broker will most likely block the demat account in which case.
OK…india vix is now at 39…is BO order opening related to some level on india vix…or is it your choice? @siva
It is based on our RMS team, they access the risk and decide.
nithin, as you said, I don’t think anyone would have thought that a commodity can trade in negative as well.
but on 3rd of april n 8th of april n 15th of april, @cmegroup already give advisory to its customer, brokers, and partner ( mcx is also partner in settlement price ) for the negative prices, but MCX hide this from its broker and trader by not providing any circular for this, if people with power inside MCX are connected with oil segment then their are chance that they are using it as benefits of chance, and with their luck they get the chance and use it as their benefit, if this is so then this may be first #scam in #lockdownIndia, because this is clearly shows that mcx has two settlements options in this scenario,
let take one condition, if nymex crudeoil will settle at -300 usd barrel (which is also chance account to circuit limits of nymex), then maximum broker will declare themselves defaulter, then mcx is also not able to pay to other brokers, so MCX has to declare themselves as defaulter, means mcx is gambling in huge amount here, we need to raise our voice against such people with power in mcx or sebi, and if you are only looking for your 10 crore money then this is wrong, you have to raise your voice for what is right, and if loyal investor will suffer in this situation then one day everyone become defaulter because of such mistake or scam by mcx
mcx has settlement guarantee fund, if they admit this was their mistake of manipulating the informations, then those who suffer losses can get their fund from their, as settlement guarantee fund is for such situations.
sgx has only open interest of 3 lots in wti crude future april 2020,
dubai has already made clear to its customer brokers and partner about the negative price in contracts,
so this is not the issue of timing, this is the issue of hiding information by mcx to its customers brokers
Killer movements., with prices moving beyond bottom. A lot of people would have had heart attacks next morning.
Right
Contract notes are generated based on the trade files and the settlement files we receive from the Exchange. On the said day, we received the file with Re.1 as the settlement price and the entry on the ledger was posted considering 1 as the settlement price of the contract.
The next day, we received an ‘Adhoc charges’ file from the Exchange on the basis of which the differential entry was posted and additional MTM debited/credited. In respect of the additional MTM, the following email was sent:
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They can’t prepare contract note now with negative. No accounting software works for negative. If we do high school math, buyer should get money . That’s why they are sending separate note . This is unimaginable…
We are group of > 50 people planning to filing suit against MCX/Broker for demanding 2.88 + 0.95 = 3.85 lacs/lot . Many people have lots more than > 10. Please join our whatsapp group 99935-12012
My humble request to all here… Please don’t trade to risk your life and your hard earned money will be looted…
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