Loss in commodities trading due to failure of Risk Mgmt System
this occurred more than 2 years back and out of nowhere I started getting notices from the broker in December last year whereas on phone I was told last year that it was not my mistake so I don't need to do anything.
i went to the multi commodity exchange and in the meeting for mediation the broker was not willing to accept his mistake but was willing to acccept rs 30,000 against the debit of rs 2.57 lakhs.
later i noticed that my networth,date of signing,etc were changed and overwritten in the KYC and account opening documents with the broker.
here is what happened:
it was the first day of my trading with the broker for commodities.
it was the first time in my life that I was trading in commodities market(mcx).I had deposited rs 9000
to my zerodha account for the purpose of trading,
I successfully bought goldpetal and nickelmini contracts.
I had assumed that 1 lot means 1 quantity of that commodity so I tried
to buy multiple lots as I had 9000 in my account.
I saw in nest trader software that mtm profit and loss was being shown
which looked huge as if I have purchased enormous amounts.i assumed it
is a glitch as I have had a similar experience earlier with this same
but still to confirm I called their customer care number at 21:01 pm and asked about the possibility of going into a mtm loss of more than the client balance.i was told and reassured that incase the mtm loss exceeds more than 50% of the client balance,the orders get squared off
automatically so there is no question of getting into debts.i confirmed this many times and so I didn't worry then.
but when I logged into the website and checked the positions I was surprised to see a huge MtoM amount in lakhs being shown as loss.so I again called the customer care no and I asked why is it showing like this.
but the person responded very rudely and threatened that he will take police action and will send me to jail.he also told not to act innocent and told that I have executed the orders so I am responsible and was shouting.i told him again that I was not aware of this and had called earlier to confirm but I was told and reassured that incase the mtm loss exceeds more than 50% of the client balance,the orders get squared off automatically so there is no question of getting into
another person called Shankar called me from +919538645445 at 23:24 pm
and first told me about the mtm loss then when I told him about what
happened he also threatened me for dire consequences and criminal
its shocking that a client having 9000 RS buys contracts MORE THAN 3.5 crores RS!!
i am not capable of paying even Rs 30,000 as I am unemployed right now and dont have anything in my name,etc
Please suggest me something,I shall be grateful to you forever as it is giving extreme tension and sleepless nights to me.