Just in news. I heard that there is a force selling going on by one broker firm

Roboticfx

Roboticfx

Senior Vice President - Equity Analytics

Posts : 1858
Join date : 2011-07-16

@A2Z wrote:Capital Trust is the worst brokering firm i have ever seen. Making people more poor and poor

Why did you say this? Please write down in details briefly about your experience.

econ

econ

Global Moderator

Posts : 1474
Join date : 2011-01-27

@Chinwi wrote:Yes. Margin account holders have to maintain a portfolio value double (or more) of their debt taken from the provider.

When share prices fall portfolio value goes down but their debt remains same or goes up monthly with the interest. Either they have to put money to the account or sell shares to balance the amount.

Yes , at the moment we are watching the horrorous outcome of this vicious cycle .
Shares down -> Margin call -> sell shares to pay -> selling pressure -> prices go down -> new margin call -> again selling -> ......... so on.

Unfortunately this do not spare the people who do not use margin trading.

When you get into the opposite you can see the other cycle.

Shares up -> portfolio value up = more margin(buying power) -> buy using increased margin -> buying pressure -> shares go up -> portfolio up -> more margin -> buy -> .....

What is the name for this cycle ? Sansara Asha ?

thankjs and nicely explained chinwi.. That this is vicious circle of margin pressure

aj

aj

Assistant Vice President - Equity Analytics

Posts : 766
Join date : 2011-11-25

1. Veena Jan 24
With last weeks announcement about restarting of SEC inquiries in to malpractices, some brokers and manipulators want show the new chairman who is the boss.

From comments http://lbo.lk/fullstory.php?nid=1702018582

Hope the SEC has a spine to punish and banish these brokers and manipulators.

Soundchips

Soundchips

Senior Manager - Equity Analytics

Posts : 576
Join date : 2011-02-05

@warna123 wrote:News is 100% confirmed,I personally know,Asha phillips is doing force selling

No evidence of force selling.

prasa2004

prasa2004

Manager - Equity Analytics

Posts : 151
Join date : 2011-12-16

i am trading from overseas via directfin online with ASHA and usually have no communication with them. i generally carry forward 50,000-75,000 rolling settlement due and they have not forced sale but instead apply interest. i do not know the amount is small for them to force sell.

market bull

market bull

Assistant Vice President - Equity Analytics

Posts : 636
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Join date : 2011-12-01

I have been trading with my broker firm more than 5 years.For me there giving 50% credit from my portfolio at any time i want.not giving much pressure to sell the shares at loss.only thing is they charge interest as usual.

@ss7097 wrote:Hi Guys,

I got news from one of my colleagues who also having account with Asha Phillip has informed that Asha phillip cannot give credit. But same broker has promised us that they will allocate 40% of our portforlio as Credit when CSE has allocated more credit to broker firms. We're new to CSE and can anyone who has more experience in this market know whether brokers cannot allocate credit for their customers. Is this CSE gives credit only for brokers to buy and sell shares on this allocated credit their own or to allocate credit for their customers.

Cheers

LateTackle

LateTackle

Senior Equity Analytic

Posts : 69
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Join date : 2011-06-04
Location : ABU DHABI

@A2Z wrote:Capital Trust is the worst brokering firm i have ever seen. Making people more poor and poor

Please let us know the details so that it help others

Chinwi

Chinwi

Associate Director - Equity Analytics

Posts : 3097
Equity Stars : 7802
Reputation : 418
Join date : 2010-06-08
Location : Asia

@prasa2004 wrote:i am trading from overseas via directfin online with ASHA and usually have no communication with them. i generally carry forward 50,000-75,000 rolling settlement due and they have not forced sale but instead apply interest. i do not know the amount is small for them to force sell.

You are Correct.

As in any business they judge you individually. They identify who are the troublemakers. If you fall into that category by defaulting regularly , buy without any control, hint them that you have delays or troubles in your cash flow then they will put breaks. Even they judge you by your selections: your approx. holding ratio of speculative useless shares Vs strong fundamentals. They know you and your trading pattern personally . They know who are the safe players and who fell into traps regularly. Then treat you accordingly.

Roboticfx

Roboticfx

Senior Vice President - Equity Analytics

Posts : 1858
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Join date : 2011-07-16
Location : 5° 55'N - 9° 55' N and 79° 42'E - 81° 52E'.

@LateTackle wrote:

@A2Z wrote:Capital Trust is the worst brokering firm i have ever seen. Making people more poor and poor

Please let us know the details so that it help others

I think he was given the worst adviser! Very Happy

ekko "ledak dagena" Very Happy

else

Both!

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Just in news. I heard that there is a force selling going on by one broker firm

21 Re: Just in news. I heard that there is a force selling going on by one broker firm Wed Jan 25, 2012 9:10 am

Roboticfx

22 Re: Just in news. I heard that there is a force selling going on by one broker firm Wed Jan 25, 2012 9:21 am

econ

23 Re: Just in news. I heard that there is a force selling going on by one broker firm Wed Jan 25, 2012 9:24 am

aj

24 Re: Just in news. I heard that there is a force selling going on by one broker firm Thu Jan 26, 2012 8:15 am

Soundchips

25 Re: Just in news. I heard that there is a force selling going on by one broker firm Thu Jan 26, 2012 8:20 am

prasa2004

26 Re: Just in news. I heard that there is a force selling going on by one broker firm Thu Jan 26, 2012 8:26 am

market bull

27 Re: Just in news. I heard that there is a force selling going on by one broker firm Thu Jan 26, 2012 9:23 pm

LateTackle

28 Re: Just in news. I heard that there is a force selling going on by one broker firm Thu Jan 26, 2012 11:01 pm

Chinwi

29 Re: Just in news. I heard that there is a force selling going on by one broker firm Thu Jan 26, 2012 11:02 pm

Roboticfx

30 Re: Just in news. I heard that there is a force selling going on by one broker firm

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