There's gotta be more to this story
The story of the demo trader who was trading with real money came out a couple days ago and I can't shake the feeling that we're not getting the whole story.
Certainly, it doesn't reflect greatly on anyone. There's no way the broker should have allowed the guy to trade on positions that large with real money. They surely must be counting their blessings that he didn't lose a significant amount of money. The UK company supposedly only had £9.88m of revenue last year. Imagine he would have lost $1 billion?
At some point, you think it would have been wiser for the company to offer him a few million because the regulators are going to make life very miserable for them.
The story is that he was placing €1bn of orders for European and US equity futures - then realizing it was a live platform and that he had lost more than €1m. He continued trading, eventually building up a $5bn position in US equity futures and turning the loss into a profit of more than €10m.
All the P&L numbers sound large but €10 million on a $5 billion position is a move of just 0.2%.
At the end of the day, what's the right decision here? I say, give the guy his money.
If you'd like to sign up for a demo account (or a real one) make sure to check out our forex broker section.
