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The real question is whether it would have been better or worse for the case if he actually had lost 700k.
by Gunax 6y ago
The real question is whether it would have been better or worse for the case if he actually had lost 700k.
- xyzelement 6y agoSad case but a completely inappropriate lawsuit. As society we allow people to chose to take risks they are comfortable with (otherwise everyone would be locked up in their homes wrapped in bubblewrap.) I am not a RH user but I expect that to get started you have to transfer in money. To do anything with leverage (options, etc.) you certainly have to opt-in to additional agreements including indicating that you understand the risks, etc. Ultimately the steps of "wiring money in" or accepting "I understand I can lose more than I invested" should trigger something in your brain. And if it doesn't unfortunately you have to pay the price rather than somehow making the whole activity illegal. Obviously this is a terrible situation for the family, but it's also a reminder that parents need to teach their kids common sense. For example: there's no free lunch. If your kid at 20 has the brain that says "oh duh there's free money here" you kinda messed up.
- Gunax 6y agoI think the lawsuit has more to do with RH accidentally showing a debt of 700k than actually letting people lose 700k on margin. It will be settled out of court.
- hypertele-Xii 6y agoHow about this for common sense: Don't kill yourself. Especially not over something as trivial as money.