TradeStation Halts Daytrading Of Overnight Futures Trading Due To "Extreme Volatility"

While clients of Roboadvisors may have had a bad day today, when instead of being allowed to log into their online trading accounts they got 404 errors, the pain for clients of Trade Station is just starting, because according to an email blasted to the company's "valued clients", due to the "extreme volatility in the markets, day trading of ALL futures products has been suspended for the overnight session."

The bad news did not stop there, however, and the notice told TS traders that those trading without initial margin in the most widely held futures contracts, "are subject to immediate liquidation."

In other words, full margin will be required for contracts to be traded overnight.

Here is the full notice for what is setting up to be an extremely chaotic overnight session, one in which we expect one or more major trading firms to be wiped out, with the possibility of central bank intervention spiking.

 

 

Comments

Unprepared Mon, 02/05/2018 - 19:06 Permalink

Holy. If tomorrow opens where we closed, a fund is definitely blowing up somewhere.

If anyone remembers, this might be the equivalent of the China action (late 2006) that preceded BNP shutting their funds and then Northern Rock.

davatankool Mon, 02/05/2018 - 19:07 Permalink

FED or banks may try to rescue the bond market by pushing the yield lower tomorrow, but its the Volatility ETN the black swan, they cant do anything about it, billions of dollar wiped out and this hole is going to cause traders a fortunate. this is it!

 

 

Let it Go Mon, 02/05/2018 - 19:10 Permalink

So much for being able to get out of a market. Most investors think that even if things go downhill fast that they will be smart enough to get out of the markets. After the debacle in 2008 where they saw the market take nasty and violent swings they learned a few things, this time, they figure they will make the right moves before it is too late. But what if it hits like the flash crash on steroids?

Imagine a scenario where the if the market falls like a flash crash on steroids investors are trapped. They have been assured that can't happen because circuit breakers have been put in place to arrest panic style moves but if trade is halted, and the market simply does not reopen for days or even weeks suddenly it is a new game. As remote as this might seem the article below explores this possibility and the far-reaching ramifications.

 http://Flash Crash On Steroids Is Possible .html

Element Mon, 02/05/2018 - 19:13 Permalink

Oh the fucking pundits! .... these fuckhead pundits on dah boob-tube....! .... they just got a major overdose of prudential rectitudes! .... fucking phoneys were all gung-ho ... just last Thursday .... fucking gobsites!

GotGalt Mon, 02/05/2018 - 20:14 Permalink

Doors are slamming shut everywhere one looks now.  Exit signs removed.  Anybody left in the casino is trapped, and a fire is starting to blaze inside.

Thautikus Mon, 02/05/2018 - 20:14 Permalink

"due to the "extreme volatility in the markets, day trading of ALL futures products has been suspended for the overnight session.""

 

Read: Due to instructions from our criminal masters at the Fed, ECB, BOJ and the IMF we'll tell you fuckers when you can sell, this is our market not yours.

ZeroLounger Mon, 02/05/2018 - 21:43 Permalink

They took the escalator up, but when they got in the elevator to go down, the doors shut, it got jammed between floors and they saw the sign 'Out Of Service'.

 

Then, the cable broke.....

Erwin643 Tue, 02/06/2018 - 00:32 Permalink

Anyone here have a trading account with Ally Bank (formerly Trade King)?

I got the same BS message after I sold two separate volatility shorts (was shorting UVXY and VXX) in my margin account. When I saw SVXY drop below its 10-month MA, I knew something was wrong. I wanted to go long UVXY and they wouldn't let me! Motherfuckers!!

NAP Tue, 02/06/2018 - 11:04 Permalink

It's long past this article's first posting, however, at 11:00 AM, EST, 2-6, I never got any such message from TS.  My account was never inaccessible.  I was able to trade after the close yesterday and before the open this morning.

What was the source of this article?  I call BS.