Spreadbetting - IG complaint

mr_put said:
"care to u ? 200:1 is legal in the UK u should complain to the FSA to change their rules , it has nothing to do with IG's risk m" - i approached the FSA, they said they don't deal with complaints direct from the public. i asked the FOS to refer the matter to the FSA, they said that they don't refer matters to the FSA. err...ok, so where does that leave financial services regulation? shall i come back in 20 years when you're back from lunch / sick leave / strike?

"I think they did nothing wrong in letting you open the positions, you had the credit for the positions and could calculate how much each point against you would take on your bankroll and credit. This is not a good defense for your case as I see it. You chance lies in your inexperience not being able to close the position, in close connection to breaching the credit you had been granted. You fail to do this, and with a crazy volatile market at the time, they should have closed your position as you were no longer covered by the credit given you." - that is my main defence, but with the benefit of the experience i now have, i think IG's risk assessment of market volatility at the time was woefully inadequate. they obviously realised, too late for some customers, that they had underestimated market volatility by increasing the risk factor from 80, not to 100, not to 120, not to 160, but to 200 in 1 foul swoop. at 200, i would only have been able to put on £100 per point, which would have halved my losses - still not ideal, but a lot better than 92k!
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I don't think it is relevant to your case, at that time it was 80, you accepted opening the positions with the information you had at hand.
 
mr_put said:
"care to u ? 200:1 is legal in the UK u should complain to the FSA to change their rules , it has nothing to do with IG's risk m" - i approached the FSA, they said they don't deal with complaints direct from the public. i asked the FOS to refer the matter to the FSA, they said that they don't refer matters to the FSA. err...ok, so where does that leave financial services regulation? shall i come back in 20 years when you're back from lunch / sick leave / strike?

"I think they did nothing wrong in letting you open the positions, you had the credit for the positions and could calculate how much each point against you would take on your bankroll and credit. This is not a good defense for your case as I see it. You chance lies in your inexperience not being able to close the position, in close connection to breaching the credit you had been granted. You fail to do this, and with a crazy volatile market at the time, they should have closed your position as you were no longer covered by the credit given you." - that is my main defence, but with the benefit of the experience i now have, i think IG's risk assessment of market volatility at the time was woefully inadequate. they obviously realised, too late for some customers, that they had underestimated market volatility by increasing the risk factor from 80, not to 100, not to 120, not to 160, but to 200 in 1 foul swoop. at 200, i would only have been able to put on £100 per point, which would have halved my losses - still not ideal, but a lot better than 92k!
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These r the rules in this industry it is legal to give high leverage , anyway it is now 40 for the Ftse ...
 
"I don't think it is relevant to your case, at that time it was 80, you accepted opening the positions with the information you had at hand" - with the information AND experience i had at hand. would i do the same again with more experience - no!

"mr_p: have you asked IG when they would have closed your position if you hadn't?" - no, all they're saying is that their T&Cs state that they can close your poistions but they're obliged to. i suppose this is one that will come up in court.
 
mr_put said:
"I don't think it is relevant to your case, at that time it was 80, you accepted opening the positions with the information you had at hand" - with the information AND experience i had at hand. would i do the same again with more experience - no!

"mr_p: have you asked IG when they would have closed your position if you hadn't?" - no, all they're saying is that their T&Cs state that they can close your poistions but they're obliged to. i suppose this is one that will come up in court.
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Of course you wouldn't now, as you have learned about the importance of money management, and of monitor a position if you don't have a stop loss in place.
 
tar said:
care to u ? 200:1 is legal in the UK u should complain to the FSA to change their rules , it has nothing to do with IG's risk m
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You should complain too. Everyone should complain. Leverage is what destroyed Lehmans, Northern Rock, Bears Stearns, and required bailouts of HBOS, RBS Greece, etc etc etc.

I saw an ad today in the Mail on Sunday that said "start spreadbetting drom 10p" without explaining leverage in large letters!

People should wake up! Spread better's are addicts.
 
Nan said:
You should complain too. Everyone should complain. Leverage is what destroyed Lehmans, Northern Rock, Bears Stearns, and required bailouts of HBOS, RBS Greece, etc etc etc.

I saw an ad today in the Mail on Sunday that said "start spreadbetting drom 10p" without explaining leverage in large letters!

People should wake up! Spread better's are addicts.
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I agree high leverage kills but it is not the market makers fault , check what is happening in the US :

http://www.forexfactory.com/showthread.php?t=215827
 
Nan said:
You should complain too. Everyone should complain. Leverage is what destroyed Lehmans, Northern Rock, Bears Stearns, and required bailouts of HBOS, RBS Greece, etc etc etc.

I saw an ad today in the Mail on Sunday that said "start spreadbetting drom 10p" without explaining leverage in large letters!

People should wake up! Spread better's are addicts.
Click to expand...

I agree that leverage can be extremely dangerous but to go from that to saying that all spread bettors are addicts is a bit of a stretch. Are all people who like a glass of beer alcoholics?
 
I feel if you don't understand the meaning of leverage, stay away from such products. You cannot blame the SB for giving you leverage when you trade. Warning messages is constantly given about the risk of leverage.
 
"Of course you wouldn't now, as you have learned about the importance of money management, and of monitor a position if you don't have a stop loss in place" - not just in those terms. i would also now have the sense to know that just because a "professional" financial services organisation like IG hands me a noose, in the form of open-ended credit on almost no margin at ridiculously low risk factors at a time of unparrallelled market volatility, i shouldn't put that noose around my neck! with the benefit of experience, as has been posted on this thread before, i shouldn't have put bets of that exposure on, but IG had the ultimate responsibility for allowing me to do so - i was betting on credit, so this was their money, not mine, according to the consumer credit act, which hopefully will apply here.
 
mr_put said:
"Of course you wouldn't now, as you have learned about the importance of money management, and of monitor a position if you don't have a stop loss in place" - not just in those terms. i would also now have the sense to know that just because a "professional" financial services organisation like IG hands me a noose, in the form of open-ended credit on almost no margin at ridiculously low risk factors at a time of unparrallelled market volatility, i shouldn't put that noose around my neck! with the benefit of experience, as has been posted on this thread before, i shouldn't have put bets of that exposure on, but IG had the ultimate responsibility for allowing me to do so - i was betting on credit, so this was their money, not mine, according to the consumer credit act, which hopefully will apply here.
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I agree with you on the fact that they let your losses run uncontrollably after breaching the credit, but not for opening the positions in the first place. That is as far as I go, the main responsibility for trading falls on the trader not the SB.
 
"I agree with you on the fact that they let your losses run uncontrollably after breaching the credit, but not for opening the positions in the first place. That is as far as I go, the main responsibility for trading falls on the trader not the SB" - agreed, but i think IG were irresponsible to allow such a risky postion to be placed. i didn't know as much as the time. but i certainly wouldn't take that kind of exposure on now. a deposit limit of 20k might be ok, as could a risk factor of 80 on the ftse (was too low in my opinion), but allowing a bet of your entire deposit limit on 1 index should have been blocked by IG's risk management systems.
 
There is a shadowy figure overlooking all moral issues within the world of finance. Over here, we call him Don Dinero and, in most parts possession is nine tenths of the law.
 
Splitlink said:
There is a shadowy figure overlooking all moral issues within the world of finance. Over here, we call him Don Dinero and, in most parts possession is nine tenths of the law.
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Has the shaddowy figure killed off mr_put? or did he top himself?
 
nothing to report really - legal processes take time, the more time the better as far as i'm concerned.
 
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