Day traders can do the darndest things.
Harouna Traoré was making trades with Valbury Capital last summer — on a try-out version of the British brokerage’s platform, he thought. But the French day trader discovered that in fact, he had been placing actual orders worth 1 billion euros ($1.2 billion), according to a Financial Times report.
Traoré, who opened an account with $23,000, found himself in the hole by more than $1 million. But he managed to turn that real loss into an actual profit of more than €10 million ($12 million), as he built up a $5 billion position in U.S. stock futures, the FT report on Thursday said.
Yet Traoré is not necessarily on easy street after his successful bets. Instead, he is locked in a legal battle with Valbury over the roughly $12 million gain — an amount about equal to the U.K.-based brokerage’s entire annual revenue.
Valbury told him it had treated the trades as an error because Traoré had thought he was using a demo platform. The brokerage also told him that he had exceeded his trading limits, according to court filings that the FT examined.
Early Friday, U.S. equity futures ESU8, +0.35% YMU8, +0.31% were rising. On Thursday, the Dow Jones Industrial Average DJIA, -0.80% suffered its eighth down session in a row, as the S&P 500 SPX, -0.63% and Nasdaq Composite COMP, -0.88% lost ground as well.
This is an updated version of a story first published on June 21, 2018. ...