It's not a great situation that this is possible but you could make a similar error for the same amount of money in your brokerage account and also have no recourse. It could be a typo in the ticker symbol, you could buy an option for the wrong month, you could buy instead of selling, you could enter an extra zero, you could not notice a multiplier for the futures, you could let a physical delivery future expire, etc. Using Interactive Brokers or other brokers with advanced user interfaces, it's even possible to turn off confirmations or do most things with just a keyboard or through an API. I don't see this situation as significantly different.
Buy a penny stock or an illiquid option and you certainly won't get most of your money back. In addition, there are many other hidden risks. For example, you could have the broker increase the margin rates overnight leading to forced liquidations or the stock could be halted and impossible to trade for months.
You can even end up owing more than your whole account is worth if margin is enabled.
If by accident I buy an option / wrong option, realise that, I can probably sell it and get my money back, less commission, spread and change in value.
> There is no comany called "Applr", so the trade is cancelled.
I'm surprised there hasn't been something like this developed in the cryptocurrency space yet. Some sort of system where creating a wallet requires initialization before it can receive anything. Something like that would prevent most problems of typing in the wrong address because it would not be initialized.
The problem is that executing a line of code on chain is really expensive. Already quite optimised and stripped back code can cost 50-100 USD equivalent to do something fairly trivial, like swap one token for another.
Each of these checks increases the already high barrier to entry, and has little utility for the creators.
Only applies to some trades of some securities on some exchanges. Even in the most pedestrian cases, NYSE and Nasdaq, you can be up to 20% off after-hours and with portfolio margin this can wipe you out instantly. These rules were created to prevent glitches due to automated trading that might cause significant market meltdowns, not to correct trader's mistakes.
"Harouna Traore, who was taking a class in Paris to become a day trader, used a demonstration version of British brokerage firm Valbury Capital’s platform to learn how to trade equity futures last summer, according to the Financial Times. He opened an account at Valbury with about 20,000 euros, or $23,000.
A short time later, he was at home practicing on what he thought was the demo, racking up more than 1 billion euros of orders in U.S. and European stock futures, and losing more than 1 million euros. Then, Traore came to the shocking realization that the trades were live."
