Newb question

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Old Dec 2, 2011, 8:52pm   #1
 
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Newb question

What happens if you go long on a trade and the company you are betting on ceases trading? Are you then liable to pay the spread betting company a massive penalty? Sorry I am probably being very thick!
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Old Dec 2, 2011, 9:34pm   #2
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Re: Newb question

what do yiu mean, "ceases trading"; like, the stock is halted and then goes back into auction> Or the company itself ceases going about it's daily business?
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Old Dec 2, 2011, 10:03pm   #3
 
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Re: Newb question

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what do yiu mean, "ceases trading"; like, the stock is halted and then goes back into auction> Or the company itself ceases going about it's daily business?
Hi Jerry I guess I mean if the company goes bankrupt and the stock is removed from the exchange.
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Old Dec 2, 2011, 10:14pm   #4
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Hi Jerry I guess I mean if the company goes bankrupt and the stock is removed from the exchange.
Well, you know, you've got to be careful here... " the company goes bankrupt and the stock is removed from the exchange"... doesn't happen overnight mate - more information would help. What is the stock? When did you place your trade? Who with? long / Short? etc...
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Old Dec 2, 2011, 10:47pm   #5
 
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Re: Newb question

quite often in these times the odd share drop over 50%. look at thomas cook last week. I think if that did happen and you were long and the stocks worth zero,then you owe
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Old Dec 2, 2011, 11:10pm   #6
 
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Re: Newb question

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quite often in these times the odd share drop over 50%. look at thomas cook last week. I think if that did happen and you were long and the stocks worth zero,then you owe
It was precisely the Thomas cook situation that got me thinking about this. So in that case you could lose the majority of your deposit if what you say is true. A case for guaranteed stops?
But then what if you were short on said stock.... Would you win big?
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Old Dec 3, 2011, 8:50am   #7
 
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Re: Newb question

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It was precisely the Thomas cook situation that got me thinking about this. So in that case you could lose the majority of your deposit if what you say is true. A case for guaranteed stops?
But then what if you were short on said stock.... Would you win big?
absolutely, i took a huge hit with BA on sept 11, and made apacket when barclays fell to 50p twp years ago,it goes both ways
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