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Term of the Day - Rogue Trader


Rahul Gupta (Project Controller ACA MBA(Fin.))     12 May 2010

Rahul Gupta
Project Controller ACA MBA(Fin.) 
 1101 likes  8004 points

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What Does Rogue Trader Mean?


A trader who acts independently of others - and, typically, recklessly - usually to the detriment of both the clients and the institution that employs him or her. In most cases this type of trading is high risk and can create huge losses.

 

 

One of the most famous rogue traders is Nick Leeson, who was a derivatives trader at the Singapore office of Britain's Barings bank. Leeson incurred heavy losses through the unauthorized trading of large amounts of Nikkei futures and options. Leeson took large derivative positions on the Nikkei which leveraged the amount of money at stake in the trades.

At one point Leeson had 20,000 futures contracts worth over $3 billion on the Nikkei. A large chunk of the losses came from the downturn in the Nikkei after a major earthquake in Japan caused a broad-based sell-off in the Nikkei within a week. Total loss to the 233-year-old Barings Bank was well over $1 billion and led to its eventual bankruptcy. Leeson was charged with fraud and served several years in a Singapore prison.

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armchairca (Day trader/ Entrepreneur / IPCC student)     12 May 2010

armchairca
Day trader/ Entrepreneur / IPCC student 
 11 likes  146 points

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What you are creating is wonderful but It would help a lot if u compile them in one thread everday instead of creating a new thread eachday. its practical and easy reference.

thanks again.

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Rahul Gupta (Project Controller ACA MBA(Fin.))     12 May 2010

Rahul Gupta
Project Controller ACA MBA(Fin.) 
 1101 likes  8004 points

View Profile | My Other Post

Thanks a lot Urban Legend for reading and giviing a thought.

 

I am looking forward your suggestion and is preparing the file of these informational terms. But in case, if i post a no. of terms together here or just upload the file with a number of terms, my view is that it losses its relevance. It will just llike any other article which will be read once and may be viewed and forgot.

 

If, it is read one a day, then it leaves more impact in understanding than reading lots of term on one day........

Its my point of view only.......but don't worry i am preparing a file and will post the same as a consolidated one at different intervals of time.
 

Once thanks again for reading.......

Cheerssssssss........Hv a nice day ...

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Ankur Garg (Company Secretary and Compliance Officer)     12 May 2010

Ankur Garg
Company Secretary and Compliance Officer 
 15473 likes  114609 points

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Truly appreciate your humble and suitable reply to the other member. Always maintain this spirit.


Nice post again. Bravo !!!

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Rahul Gupta (Project Controller ACA MBA(Fin.))     12 May 2010

Rahul Gupta
Project Controller ACA MBA(Fin.) 
 1101 likes  8004 points

View Profile | My Other Post

Thanks Ankur ji for boosting my confidence........Thanks a lot......I always need support and feedback in both way.......positive as well as negative.......Thanks a lot....


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