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Some people lost it all, and S&P DJI gets away with a paltry $9M penalty.

• deleted 5y ago
  [deleted]
• krono 5y ago
  Unfair, no doubt. But people who have lost everything in one go? That can only be the result of either grave incompetence/inexperience, or behavioural problems of the kind that don't go so well with trading. Whatever it was that made them put all their eggs in one basket, these people should not have been making - or even have been able to make - these trades in the first place.
  • madsbuch 5y ago
    This is a dangerous way to legitimate peoples loss. Not only is it encourages to put all you eggs in one basket, it is also society facilitated to do it with a 5, 10, 15 x gearing. Yes, I talk about real estate.
    • krono 5y ago
      Yes, it was rather late when I wrote that comment, but that's essentially what I was trying to say. Of course these people did this to themselves, but perhaps they shouldn't have been able to pile on this much risk, or even have had this type of trade available to them in the first place due to suffering from diagnosed mental health problems, or for having recently displayed behaviour that is indicative of addiction. The crypto exchanges are also ridiculous. 125x Leverage on Bitcoin, available to anyone who wants it with only a cursory ID check. Most of these apps are also plastered with ads for their own internal gambling products (e.g. "Battle to win, long vs short").
    • naveen99 5y ago
      It’s not really that much leverage if you go by lifetime earnings / savings potential. which is why you won’t get the same loan without a proportional w2 or otherwise taxable income.