My thoughts with all who got carried out on this last week - it's going to be complex ! I guess brokers will struggle to completely wipe negative balances especially if much of the position was hedged.
If they cancel all the losing trades would they then have to cancel all the winning trades (there must have been some on the right side) also the hedged losses will be actual realised losses for many brokers.
I think in this case even prudent risk management and size control were effectively useless - a £20pp position would have lost £60k! How can you provision for that ? -Anyway I hope there is a legal way out on a technicality for all those who suffered life changing losses here!
If they cancel all the losing trades would they then have to cancel all the winning trades (there must have been some on the right side) also the hedged losses will be actual realised losses for many brokers.
I think in this case even prudent risk management and size control were effectively useless - a £20pp position would have lost £60k! How can you provision for that ? -Anyway I hope there is a legal way out on a technicality for all those who suffered life changing losses here!
spinola
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If you have no assets to sell, then , there is nothing for them of yours to liquidate in an attempt to gain any settlement of debt etc.
So, check your local bankruptcy laws. But know this, bankruptcy is designed to protect YOU. So if bankruptcy is the answer, let THEM pay the court costs for it too.
But , again bankruptcy is designed to protect YOU from creditors.
They'll likely have to write it off their books. You can't get blood out of a stone.
But any bankruptcy costs ? let them initiate it and pay for them.
Just a thought.
I think the takeaway here is to avoid getting anywhere near currencies whose central banks are controlling the value outside of standard mechanisms. You obviously can't avoid all risk but keeping clear of the elephant in the room is definitely something to think about
spinola
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A false currency floor is a trap door .
MegaCHFLoss
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I also lost
I also had loss with IG larger than my life savings. Interested in what are the options.
I also had loss with IG larger than my life savings. Interested in what are the options.
Hi there
Sorry to hear about your situation.
please join our group email address: [email protected]
Where abouts are you located? and have you contacted Ig markets yet?
MegaCHFLoss
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steveyorks
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I am in the same position and know exactly how you feel. I am definitely up for a grouping of our complaints. I have been with IG for years and can't believe they are doing this.
Hello, i was with CMC, i got smashed out the park with a 22k loss....i have screenshots from liquidity providers to show liquidity was present so why they didnt honour my stop of 1.9950 is beyond my comprehension. i have a setup a forum for active [email protected].
Birds of a feather lets flock together and fight this so called "Force Majeure Event".
I dont suppose you could post your screen shots here could you ? .. might help some of the others build a case !
Sonicscooter
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Its not IG's fault the market tanked, you're open position, your choice of stop, or guaranteed stop........No disrespect, but some people lost, others made, that's the world of trading.....Ye, Black Swan and all that, they don't happen often but they still do.
Hello pls see screen from the eur/chf CME
Attachments
It really is a shame people have lost really large chunks of cash on this. But I just don't see how most people can hope to claim the money back.
If you had a guaranteed stop, and the terms of agreement say that stop will be honoured, you have a case. I am sure a lot of the spread betters will be updating their terms to something more akin to 'best efforts' rather than guaranteed stops.
If on the other hand your point is that it moved more than you expected and you can't pay, well unlucky.
Screenshots of a market data system showing particular levels tell you nothing. In a normal market, if a particular level is trading, you can usually reasonably expect to be able to trade at or very near that level.
However in this case, there simply wasn't a market. Even if, say, EUR 1 mio traded at 1.1950, that doesn't mean there was the liquidity to trade 10 or 20 mio EUR. The next price was 1.10. Then 1.05. Etc. That is the nature of these things when you get so far out of range. Saying "it traded at 1.1950 so they could have cut me out" is idiotic and shows no understanding of the nature of the market in that half hour.
If you had it the right way round, you'd expect whichever spread better or broker to pay you your profit, so why should you not pay your loss? (Again with the caveat above regarding guaranteed stops).
If you had a guaranteed stop, and the terms of agreement say that stop will be honoured, you have a case. I am sure a lot of the spread betters will be updating their terms to something more akin to 'best efforts' rather than guaranteed stops.
If on the other hand your point is that it moved more than you expected and you can't pay, well unlucky.
Screenshots of a market data system showing particular levels tell you nothing. In a normal market, if a particular level is trading, you can usually reasonably expect to be able to trade at or very near that level.
However in this case, there simply wasn't a market. Even if, say, EUR 1 mio traded at 1.1950, that doesn't mean there was the liquidity to trade 10 or 20 mio EUR. The next price was 1.10. Then 1.05. Etc. That is the nature of these things when you get so far out of range. Saying "it traded at 1.1950 so they could have cut me out" is idiotic and shows no understanding of the nature of the market in that half hour.
If you had it the right way round, you'd expect whichever spread better or broker to pay you your profit, so why should you not pay your loss? (Again with the caveat above regarding guaranteed stops).
gftrader32
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How could one loose 22k on a spread betting account?
Liquidity providers almost certainly have no "responsibility".
I work in the interbank FX market and was sitting on the desk at the time. I can tell you there was zero liquidity in the half hour after the SNB announcement.
I am sorry but people sitting watching these things on computer screens simply do not seem to understand the nature of what happened.
There were prices in EBS at various levels because people leave bids and offers in, way off market, all the time. These were indeed filled. But the idea that a handful of trades at any level on the way down represented any form of liquidity, and that because these happened the whole market should have had the opportunity to also trade as much as they wanted at those levels, is simply wrong.
EnergyLegger
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well put and although the losses are regrettable it just goes to show how many people are punting this market (and others) with no basic understanding of liquidity.
