[tlug] The customer's best interest? [was: Receiving money internationally]

["Stephen J. Turnbull" <stephenjturnbull@example.com>]

Raymond Wan writes:

 > But I've been to institutions which recommended against a
 > particular option and I find that it isn't always in the customer's
 > best interest.

Back when I was single and in a betting mood, I turned my eye to soy
futures.  I had noticed that Chicago prices seemed to be a leading
indicator (ie, if Chicago price went up on Tuesday, Osaka price would
go up on Wednesday, a half-day later), and the theory worked well
enough to double my money.  I withdraw half, and then a few weeks
later after a 5 day trip to the U.S. I got a margin call.  Oy vey!
The broker recommended against closing my account, instead suggesting
that I should buy another contract taking the opposite position "to
avoid taking a loss".

I said, "hm, I can pay the fee to close out now, or I can pay the fee
to buy another contract now, and then pay two fees in October when the
contracts expire.  Shall we close the account now, or shall we call
your supervisor and ask for the telephone number of your regulatory
authority?"  He closed his mouth, and closed the account too, for some
reason. :-)

P.S. I may be an economist, but I don't really believe the "leading
indicator" story.  I got lucky.  Please be really careful before
playing with markets where you bet with borrowed principal!