Rogue Trader (1999)

Trader's Film Library #37 · Frauds and scandals. Required viewing: this is what a trader who won't accept a loss looks like.

Original title: Rogue Trader · Type: film · Created by: James Dearden · Usefulness for traders: ★★★★★

What it's about

The true story of Nick Leeson (Ewan McGregor), a Barings trader in Singapore. He hid mounting losses in an error account and kept doubling his positions until, after the 1995 Kobe earthquake, the losses brought down a bank with more than 200 years of history.

What it has to do with markets

The best film about how a trader destroys himself and an institution by refusing to accept a loss. Leeson traded futures on Japan's Nikkei index, and weak controls at the bank let him hide his positions. The losses reached about £830 million.

Lessons for traders

• doubling down on a losing position is the road to disaster (the break-even effect, Atlas of biases #38)
• hiding losses from yourself and others (the ostrich effect, Atlas of biases #32)
• risk control has to be independent of the person trading
• one external event can turn a problem into a disaster

What to watch out for

The film sticks to the facts better than many others. It can be hard to find in libraries and on streaming platforms.

The book

I review the book this title is based on in the Trader's Library: 📚 Library #006 · Rogue Trader (Nick Leeson).

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

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The description outlines the plot without revealing the ending where possible (true stories have a known outcome). Educational content, not investment advice.