SB - Quoted wrong price - Legal advice

[thomasdevos]

All,

I entered a long position on GBP/USD and my SB quoted me the incorrect price.
Their spread was 3.8769 - 3.8777, I sold my open position and made a nice profit.

Obviously this is the incorrect price but I was able to sell my position, now they have deducted my so called profit.

Anyone here knows how this works legally, is the spread bet price not legally binding? Do I have a leg to stand on?

Many thanks

 

[Airthrey Capital]

Which SB?..Did you deal on-line, or did you speak with a dealer on the phone?

 

[thomasdevos]

Which SB?..Did you deal on-line, or did you speak with a dealer on the phone?

I'm not sure if I should mention the name of the SB company at this moment. We are talking about 20000 points difference.

I was dealing online, electronically.

Just another thought: What would have happended if I opened a long position at this quote, not that I would, but I could do it. This would have been binding as well and I would have been down for 20000 points.

Many thanks

 

[FetteredChinos]

i think the small print of most SB contracts gives them the right to withdraw completed trades in exceptional circumstances

i wouldnt have thought you have a leg to stand on in this one..

fair enough if the market traded anywhere near your price, but 20,000 pips out implies a bit of a balls-up at their end and points to a big old glitch.

i admire your cheek for complaining though. in the interests of fair play, and not wanting to get my account shut down, i would just accept it and move on...

that is all for now.

FC

 

[Airthrey Capital]

As I don't know which SB you are dealing with I don't know what their terms and conditions are.

My gut feeling though is that you probably don't have a leg to stand on, particularly as it is such an obvious misquote. If you had gone long, I am sure that the trade would equally be void.

I am just surprised that an electronic system permitted such an obviously incorrect quote. Whichever SB it is, has a serious problem if such a quote was allowed to be displayed without triggering any mechanisms!

 

[JonnyT]

I had a margin call for £121,000 when CMC's system threw a wobbly over ISYS.

I was immediatly rushed to Hospital in an ambulance and didn't even get an apology.

The first line is true, the second isn't.

However I think you will find that the Spreadbet Company is not obligued to give you the price, though I would certainly fight for those 20,000 points!!!

JonnyT

 

[Racer]

didn't even get an apology.

So you got an apology? I would be rushed to hospital if you got one from CMC!

 

[thomasdevos]

I hope I get an apology ...

Based on the following findings in their customer agreement I will not follow this further up and accept fair play.

a quoted price will be incorrect if it is different from the
price that we would normally have quoted at the time when you
request it, having regard to the nature and size of the bet, to our
pricing policy in operation at the time and to the state of any
underlying market.

if at the time that you place your bet with us on the basis of
the incorrect price you know or suspect that the price is incorrect,
we will be entitled to declare void any bet based on the incorrect
price.

Many thanks for all you advise.

 

[thomasdevos]

thomasdevos - do you mind me asking WHEN you traded?

Sounds to me possibly like an unsophisticated pricing algorithm threw a wobbly when the Reuters Dealing price for cable maybe had an offer but no bid. If you take the mid price for your quote and divide by 2 you get roughly 1.9387.

I opened my position this morning, on the March future contract. Probably this explains everything how I get the open prices quoted at those levels.

When I saw this appearing on my screen, I got excited and was greedy ... after a while I saw it through and indeed if I was on the other side I would have expected the same kind of fair play.

 

[oatman]

The danger with trading on a dodgy quote is that when they cancel the trade, you are left with the open position. Depending on the time lag you could have been in trouble if the market had moved substantially.

 

[wisestguy]

>>Depending on the time lag you could have been in trouble if the market had moved substantially.


and I bet they wouldn't compensate you for that. something similar happened to me a couple of times.