Can someone help on this issue please?

newTraderMike

Junior member
10 2
Hi,

I have a small issue with capital spread today. I normally trade on US tech 100 index. Today I saw the price quote from 3690 suddenly to 6475.6. I thought it must be an error or something big is going. So I decided to take risk and placed a put bet and made £14000 when the price back to normal. When trade was closed, everything seems normal and I had the balance added. But 5 mins later, I saw an oppsite trade took place and took out all my 14000 profit. I called the capital spread and asked why the action was taken without even informing me. They said they have the right to correct wrongly priced trade. I know I was a bit greedy but 14000 was great money and that was a good bet to make. So I am just wondering whether I have a stand for this matter at all or it's just my greed place the part. :)

BTW. The terms capital spread sent me is "We reserve the right to, without your consent, either void from the outset or amend the terms of any Transaction containing or based on a Pricing Error."

Thanks for your help.
 

peakoil

Well-known member
257 38
Aye... well then, had that been a legitimate trade, you would have quite rightly been entitled to that most prestigious of accolades:

The "Fade of The Week" award.

:party:
 
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yellowfloyd

Active member
109 2
Hi,

I have a small issue with capital spread today. I normally trade on US tech 100 index. Today I saw the price quote from 3690 suddenly to 6475.6. I thought it must be an error or something big is going. So I decided to take risk and placed a put bet and made £14000 when the price back to normal. When trade was closed, everything seems normal and I had the balance added. But 5 mins later, I saw an oppsite trade took place and took out all my 14000 profit. I called the capital spread and asked why the action was taken without even informing me. They said they have the right to correct wrongly priced trade. I know I was a bit greedy but 14000 was great money and that was a good bet to make. So I am just wondering whether I have a stand for this matter at all or it's just my greed place the part. :)

BTW. The terms capital spread sent me is "We reserve the right to, without your consent, either void from the outset or amend the terms of any Transaction containing or based on a Pricing Error."

Thanks for your help.
I don’t know the legalities of these matters personally but I had guessed that there would be some small print (as you have put below) for these types of instances. I would like to hope that if you was on the wrong side of this trade that they would have ‘corrected’ it in your favour, although I would hold my breathe on that one.

It’s a shame that this trade couldn’t stand as it was a smart move on your part, but these companies always seem to be able to ‘reserve the right’ to do anything. Sorry I could offer anything legally definitive but my guess would be that you won’t have much of a chance of arguing this case and unfortunately the small print allows these firms to protect themselves.

Good luck
 

seti2

Junior member
26 1
don't tust capital spread

hi
i have account with them long time ago and i had bad memory with their bad prices on the crucial time

never trust them or trust their prices on the breaking events
there is huge delay on their prices and that lead to confusion and i get mad with them on the past either to close or to open the trade

you should not let them open that trade and on case that trade against you did they will give penny to compensate you
i'm sure no
they will tell you /it was your decision /
for that you should fight again and that was their fault and you feel weak because you think that was wrong price
but to me this is your money
 

Hate2Lose

Active member
155 3
Hi,

I have a small issue with capital spread today. I normally trade on US tech 100 index. Today I saw the price quote from 3690 suddenly to 6475.6. I thought it must be an error or something big is going. So I decided to take risk and placed a put bet and made £14000 when the price back to normal. When trade was closed, everything seems normal and I had the balance added. But 5 mins later, I saw an oppsite trade took place and took out all my 14000 profit. I called the capital spread and asked why the action was taken without even informing me. They said they have the right to correct wrongly priced trade. I know I was a bit greedy but 14000 was great money and that was a good bet to make. So I am just wondering whether I have a stand for this matter at all or it's just my greed place the part. :)

BTW. The terms capital spread sent me is "We reserve the right to, without your consent, either void from the outset or amend the terms of any Transaction containing or based on a Pricing Error."

Thanks for your help.
Heard of this before. Without looking at your terms, they always insert clauses that allow them to recover your profits if the price was wrong.

In short, very unlikely you can do anything about this.

Nice try though ;)
 

newTraderMike

Junior member
10 2
Hi,

Thanks all for your input. I had gone through the T&Cs with some very law minded help and found the terms they rely on wasn't flawless. I filed a complaint with LCG atm and awaiting for result. I might forward the case to FOS or even go to the court. I am getting some very good help and also in touch with barrister. I am awaiting some feedback on barrister and see if the case is worth to fight. :)
 

trendie

Legendary member
6,453 1,081
bad luck, newTraderMike.

generally, there are rules that allow the company to reclaim monies if there was a pricing error.

it might be worth asking what was the closest "true" price they printed.

the really interesting thing would be if another trader took an opposite trade to you.
the other trader would have lost 14000.
would the company be re-imbursing the losing trader?

there needs to be more transparency I think, and if more traders posted "pricing error" events, we could see if companies are pulling a fast one on winners only, or genuinely behave even-handedly for all their clients.

hope it hasn't out you off too much.
As long as your overall performance is positive, treat it as a glitch.
 

newTraderMike

Junior member
10 2
bad luck, newTraderMike.

generally, there are rules that allow the company to reclaim monies if there was a pricing error.

it might be worth asking what was the closest "true" price they printed.

the really interesting thing would be if another trader took an opposite trade to you.
the other trader would have lost 14000.
would the company be re-imbursing the losing trader?

there needs to be more transparency I think, and if more traders posted "pricing error" events, we could see if companies are pulling a fast one on winners only, or genuinely behave even-handedly for all their clients.

hope it hasn't out you off too much.
As long as your overall performance is positive, treat it as a glitch.
Hi Trendie,

You are very right on the transparency. £14K is good money, but the most I hate is those SB company seems able to judge their own cause. They can take you money if you loss with(out) prove, they can take money if you win with(out) prove. The fact, when they want to take it, took them 20 secs to do so and took them 8 weeks even to dealt with your complaint. I know the law and FCA allow them to do that. But if I use 8 weeks to divided by 20 secs, the result of inbalance is hugh. A bit unfair, isn't it?
 
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gle101

Veteren member
3,717 84
It happens trading the real market as well. In the "flash crash" a couple of years back they reversed a lot of trades. You know when you got an unfair price, one can always try, sometime one can get away with it.:)
 

kalott

Established member
696 64
In february when the DAX future flash crashed i was long DAX dfb with IG and the price spiked down under the stop but i didn`t get stopped out

they said that the price is a mix of both the future and the cash and this time the cash did`t go under the stop, it was only the future that spiked so they used the cash price as the "real price"

"Europe's leading derivatives exchange rejected requests to void trades made during an abnormal plunge in German equity futures"

http://www.reuters.com/article/2014/02/06/us-dax-stoppage-idUSBREA1518C20140206
 

Hate2Lose

Active member
155 3
Hi,

Thanks all for your input. I had gone through the T&Cs with some very law minded help and found the terms they rely on wasn't flawless. I filed a complaint with LCG atm and awaiting for result. I might forward the case to FOS or even go to the court. I am getting some very good help and also in touch with barrister. I am awaiting some feedback on barrister and see if the case is worth to fight. :)
Good luck. I’m guessing it will cost more than £14k, and you might be liable for their costs if you lose!
 
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