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

mra

mra

Manager - Equity Analytics

Posts : 271
Equity Stars : 5099
Reputation : 7
Join date : 2011-06-22
Location : Colombo

anyone got any news about this?

PGCR

PGCR

Equity Analytic

Posts : 46
Equity Stars : 4873
Reputation : 9
Join date : 2011-03-10

it should be Bartleet..

wiki

wiki

Assistant Vice President - Equity Analytics

Posts : 687
Equity Stars : 5697
Reputation : 41
Join date : 2011-02-03
Location : Colombo

This will trigger a vicious cycle ..

I think there is margin call by PABC

ABEST

ABEST

Senior Manager - Equity Analytics

Posts : 556
Equity Stars : 5745
Reputation : 14
Join date : 2011-06-26

yeap,
i think Lanka Security is doing that

ABEST

ABEST

Senior Manager - Equity Analytics

Posts : 556
Equity Stars : 5745
Reputation : 14
Join date : 2011-06-26

PGCR wrote:it should be Bartleet..

BMS is not so far. because i have debit balance in BMS
my adviser did not call to sell so far

hawklk

hawklk

Senior Manager - Equity Analytics

Posts : 371
Equity Stars : 5374
Reputation : 24
Join date : 2011-02-10

If this is true....The SEC should regulate this. One broker firm or firms cannot be allowed to ruin the market as whole. This is where SEC failed......

I would like to see SEC further reduce the broker fee or put in different fee band.

1. Just to act as a broker between CSE and client a fee band
2. The above + investment advice another fee band

As for once I do not trust these so called "Investment advisers"

kelumhewage

kelumhewage

Manager - Equity Analytics

Posts : 152
Equity Stars : 4949
Reputation : 3
Join date : 2011-08-12

again....capital trust sold my at 80% lost...

Chinwi

Chinwi

Associate Director - Equity Analytics

Posts : 3097
Equity Stars : 8954
Reputation : 418
Join date : 2010-06-08
Location : Asia

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 ?

Deva

Deva

Senior Manager - Equity Analytics

Posts : 356
Equity Stars : 5264
Reputation : 16
Join date : 2011-02-28
Location :

kelumhewage wrote:again....capital trust sold my at 80% lost...

Didn't they atleast call you before selling?

mra

mra

Manager - Equity Analytics

Posts : 271
Equity Stars : 5099
Reputation : 7
Join date : 2011-06-22
Location : Colombo

kelumhewage wrote:again....capital trust sold my at 80% lost...

ok. the heard news got confirmed. tks

Roboticfx

Roboticfx

Senior Vice President - Equity Analytics

Posts : 1858
Equity Stars : 7905
Reputation : 131
Join date : 2011-07-16
Location : 5° 55'N - 9° 55' N and 79° 42'E - 81° 52E'.

SEC should take urgent actions against this if it wants to keep the market strong and healthy.

http://www.reuters.com/article/2012/01/23/markets-srilanka-idUSL4E8CN59620120123

bakapandithaya

bakapandithaya

Vice President - Equity Analytics

Posts : 1447
Equity Stars : 7422
Reputation : 58
Join date : 2011-09-17

mra wrote:

kelumhewage wrote:again....capital trust sold my at 80% lost...

ok. the heard news got confirmed. tks

Will others may follow Crying or Very sad

ss7097

ss7097

Manager - Equity Analytics

Posts : 108
Equity Stars : 4996
Reputation : 12
Join date : 2011-01-28

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

warna123

warna123

Stock Trader

Posts : 9
Equity Stars : 4547
Reputation : 1
Join date : 2011-11-30

News is 100% confirmed,I personally know,Asha phillips is doing force selling

A2Z

A2Z

Manager - Equity Analytics

Posts : 195
Equity Stars : 4846
Reputation : 21
Join date : 2011-12-02

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

Roboticfx

Roboticfx

Senior Vice President - Equity Analytics

Posts : 1858
Equity Stars : 7905
Reputation : 131
Join date : 2011-07-16
Location : 5° 55'N - 9° 55' N and 79° 42'E - 81° 52E'.

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 : 1479
Equity Stars : 8419
Reputation : 94
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
Equity Stars : 5433
Reputation : 45
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
Equity Stars : 5540
Reputation : 138
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
Equity Stars : 4754
Reputation : 8
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
Equity Stars : 5306
Reputation : 18
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
Equity Stars : 4795
Reputation : 3
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 : 8954
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
Equity Stars : 7905
Reputation : 131
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!

Sponsored content

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Latest topics

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

1 Just in news. I heard that there is a force selling going on by one broker firm Tue Jan 24, 2012 11:43 am

mra

2 Re: Just in news. I heard that there is a force selling going on by one broker firm Tue Jan 24, 2012 11:53 am

PGCR

3 Re: Just in news. I heard that there is a force selling going on by one broker firm Tue Jan 24, 2012 11:54 am

wiki

4 Re: Just in news. I heard that there is a force selling going on by one broker firm Tue Jan 24, 2012 11:57 am

ABEST

5 Re: Just in news. I heard that there is a force selling going on by one broker firm Tue Jan 24, 2012 11:59 am

ABEST

6 Re: Just in news. I heard that there is a force selling going on by one broker firm Tue Jan 24, 2012 11:59 am

hawklk

7 Re: Just in news. I heard that there is a force selling going on by one broker firm Tue Jan 24, 2012 12:08 pm

kelumhewage

8 Re: Just in news. I heard that there is a force selling going on by one broker firm Tue Jan 24, 2012 12:23 pm

Chinwi

9 Re: Just in news. I heard that there is a force selling going on by one broker firm Tue Jan 24, 2012 12:24 pm

Deva

10 Re: Just in news. I heard that there is a force selling going on by one broker firm Tue Jan 24, 2012 12:36 pm

mra

11 Re: Just in news. I heard that there is a force selling going on by one broker firm Tue Jan 24, 2012 12:43 pm

Roboticfx

12 Re: Just in news. I heard that there is a force selling going on by one broker firm Tue Jan 24, 2012 12:47 pm

bakapandithaya

13 Re: Just in news. I heard that there is a force selling going on by one broker firm Tue Jan 24, 2012 12:47 pm

ss7097

14 Re: Just in news. I heard that there is a force selling going on by one broker firm Tue Jan 24, 2012 10:09 pm

warna123

15 Re: Just in news. I heard that there is a force selling going on by one broker firm Wed Jan 25, 2012 9:05 am

A2Z

16 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

17 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

18 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

19 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

20 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

21 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

22 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

23 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

24 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

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

Sponsored content

New topics