Non ECN brokers don't actually place orders, right? They "manage the risk", meaning that it's all just a video game.
So when a black swan event occurs, there is no actual debt, so why wouldn't they just wipe out the account and hope the client starts a new one instead of going after him?
Does anyone know if such cases have actually been to court? What judge would in his right mind side with a broker for a debt that doesn't actually exist?
Also, if you have a limit order and the price gaps over it but in your favor, will the broker fill that order and the next best price available?
(in the 2015 SNB event, did some traders have some buy orders where the others had stop losses, and won a huge trade?)
So when a black swan event occurs, there is no actual debt, so why wouldn't they just wipe out the account and hope the client starts a new one instead of going after him?
Does anyone know if such cases have actually been to court? What judge would in his right mind side with a broker for a debt that doesn't actually exist?
Also, if you have a limit order and the price gaps over it but in your favor, will the broker fill that order and the next best price available?
(in the 2015 SNB event, did some traders have some buy orders where the others had stop losses, and won a huge trade?)