Swiss move and Brokers worth their salt

[Marmany]

You are liable for negative balance

Hereby confirm that you are liable to pay back any negative balance, either to the broker or the receiver.

I unfortunately had postions open with 3 spread bet companies when 9/11 disaster struck and had to payback negative balances

 

[Pat494]

Anyone know how the smaller brokers in exotic islands faired ? e.g.There is a broker operating out of The Maldives, I forget which and some out of Cyprus/Greece like AAAFX.

I expect some negative balance customers will try and hide out the storm, in a mud hut on a tropical island perhaps ?

 

[FCMForex]

Yes they can. Whether they will or won't is a different matter.

Its no different to a mortgage company asking you to pay back the £100,000 loan on your house that is now only worth £10,000.

The mortgage company may accept the keys back as settlement or they may pursue you for the loss you have inherited. They may or they may not.

If your broker has taken a written agreement to payback the negative balances in a trading account then only one can demand to settle the negative balances , otherwise if not written by broker in Client's Agreement then definitely a broker or even the mortgage company cannot claim back the negative balances from Client.

 

[dealer911]

If your broker has taken a written agreement to payback the negative balances in a trading account then only one can demand to settle the negative balances , otherwise if not written by broker in Client's Agreement then definitely a broker or even the mortgage company cannot claim back the negative balances from Client.

Not sure what you mean here but normally at account opening stage you "accept" that losses may be greater than the equity in your account.

If you cancel the losing trades must you cancel the profitable trades as well ?

 

[FCMForex]

Not sure what you mean here but normally at account opening stage you "accept" that losses may be greater than the equity in your account.

If you cancel the losing trades must you cancel the profitable trades as well ?

Due to such reasons of broker itself "STOP-OUT" level was invented so that client should know at what Percentage of Equity there account would face a Margin Call & Stop Out Levels. But yes a huge spike in fraction of seconds can break that Stop Out levels.

 

[Marmany]

FCMForex, what you are posting is very misleading. Your knowledge on contract law is clearly limited.
Several of your statements bear no relationship to reality.

 

[timsk]

FCMForex, what you are posting is very misleading. Your knowledge on contract law is clearly limited.
Several of your statements bear no relationship to reality.

I trust I speak on behalf of everyone in saying that I really hope no member loses their life savings or goes bankrupt over this and that the brokerage firms involved right-off their debts. Clearly, some members have every reason to be extremely worried about how this whole mess will be resolved and, as such, what will help them the most would be for those of you who post on this and related threads to make it clear whether your comments are just personal opinion or are based on fact that can be substantiated. If the latter, any evidence you care to offer in support of your comments is welcomed. There's no problem with the former; we're all entitled to our views. I'm just thinking that if I was someone affected by this, the posts I'd value the most would be the ones based on fact that provide clarity, written by industry professionals, or those of you with a solid grasp of financial contract law or a related expertise. Each of you will know which side of that divide you fall!

Tim.

 

[FCMForex]

I trust I speak on behalf of everyone in saying that I really hope no member loses their life savings or goes bankrupt over this and that the brokerage firms involved right-off their debts. Clearly, some members have every reason to be extremely worried about how this whole mess will be resolved and, as such, what will help them the most would be for those of you who post on this and related threads to make it clear whether your comments are just personal opinion or are based on fact that can be substantiated. If the latter, any evidence you care to offer in support of your comments is welcomed. There's no problem with the former; we're all entitled to our views. I'm just thinking that if I was someone affected by this, the posts I'd value the most would be the ones based on fact that provide clarity, written by industry professionals, or those of you with a solid grasp of financial contract law or a related expertise. Each of you will know which side of that divide you fall!

Tim.

I just meant to say that the whole process totally depends upon the agreement a client make with one broker & which should be accepted just after understanding the T&C's laid down by the company.

There are brokers who strongly claim under there agreements that they will cover the Negative balance if the account goes in such state. So overall it depends upon your broker. Again it comes to the same point that it is the T&C's of your broker where brokers protect client's account by not making them loose/pay below their deposited money or in other words you can say they cover the negative equity of your Account.

 

[timsk]

I just meant to say that the whole process totally depends upon the agreement a client make with one broker & which should be accepted just after understanding the T&C's laid down by the company . . .

Hi FCMForex,
That's fine - no problem at all. My comments in the post above aren't aimed at any individual members and apply just as much to me as they do to anyone else!
Tim.