Hi there . Say Im long the dow in £100 a point I need an ntr of £100 per £ and some variation margin. So I have 10 K in the account -- 5 k for the ntr and 5 k for up to 50 pips loss and I put a s/l in at say a 40 pip loss . Then while Im asleep overnight there is a 9/11 or Black monday 1987 and the dow drops 3000 pips ! Assume my s/l isnt done what happens ??
Im ****** ! The spread company liquidates my account because there is no more variation margin . I cannot afford the 300k loss !! How enforceable are these bets ? Ive got a Cap spreads acc and their ntr is lower plus they only are open between 7am and 9.15 pm so they wouldnt do anything with a s/l if it was outside their hours . If i dont pay and they have hedged the position ? They could go bust especially Capital who are worth about 30 mio cmc are about 25 bigger but even so . Has anyone thought about this ?
Same applies to futures markets which are closed some of the day i.e. ftse ?
cmc do a contolled risk bet ( not the others i think ) but premiums are high and I wouldnt think people take these bets unless they have a cable position before NFP or have BT shares just before their finals are announced ! Your comments would be appreciated -thank you
Im ****** ! The spread company liquidates my account because there is no more variation margin . I cannot afford the 300k loss !! How enforceable are these bets ? Ive got a Cap spreads acc and their ntr is lower plus they only are open between 7am and 9.15 pm so they wouldnt do anything with a s/l if it was outside their hours . If i dont pay and they have hedged the position ? They could go bust especially Capital who are worth about 30 mio cmc are about 25 bigger but even so . Has anyone thought about this ?
Same applies to futures markets which are closed some of the day i.e. ftse ?
cmc do a contolled risk bet ( not the others i think ) but premiums are high and I wouldnt think people take these bets unless they have a cable position before NFP or have BT shares just before their finals are announced ! Your comments would be appreciated -thank you