The Negative Balance Question.
Sep 07, 2014 at 23:14
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6 Replies
Membro Desde Apr 20, 2010
814 postagens
Sep 07, 2014 at 23:14
Has you experience the account gone negative as by Margin Call, does your broker required you to fill up the debt?
Or you just change Broker and ignore the debt.
If you got few accounts hold in that Broker, will they just deduct from your other account or from your reserve balance and so on...
You can easily go Margin Call if the broker spread suddenly become 1000 pips rite?
Or you just change Broker and ignore the debt.
If you got few accounts hold in that Broker, will they just deduct from your other account or from your reserve balance and so on...
You can easily go Margin Call if the broker spread suddenly become 1000 pips rite?
Information is Gold when come to organised.
Membro Desde Feb 02, 2014
15 postagens
Sep 08, 2014 at 06:47
Usually we accept this possibility when signing the contract, but in fact is a very rare event because stop out of all brokers is set with safety margin to prevent this problem;
However, to be validated eventual spike or movement must be present on the official quotes....in january, a fake spike on alpari caused a debt of more than 1M on one of my real accounts, but obviously it was a problem on their server and the balance was immediately restored.
However, to be validated eventual spike or movement must be present on the official quotes....in january, a fake spike on alpari caused a debt of more than 1M on one of my real accounts, but obviously it was a problem on their server and the balance was immediately restored.
Anexos :
Membro Desde Apr 20, 2010
814 postagens
Sep 08, 2014 at 11:42
(editado há Sep 08, 2014 at 11:43)
I didn't aware of such contract.
<<< That we need to settle the debt if there is really a big spike and cause margin call result negative balance >>
If broker able to prevent this then there should no sort of this contract to be exist rite?
The contract is digitally sign or Paper one?
<<< That we need to settle the debt if there is really a big spike and cause margin call result negative balance >>
If broker able to prevent this then there should no sort of this contract to be exist rite?
The contract is digitally sign or Paper one?
Information is Gold when come to organised.
Membro Desde Feb 02, 2014
15 postagens
Sep 08, 2014 at 14:55
Yes, indeed it is so, because the mediator is required to apply any technological measure to prevent this, so it is almost always a doubt clause in the contract and if the broker insists, remains the complaint.....but broker asks you this?
Membro Desde Feb 02, 2014
15 postagens
Sep 08, 2014 at 14:55
An example of this 'doubt' disclaimers:
Client Risk Warning
The products offered by xxx Capital Markets UK Limited ('xxx') for trading on its trading platforms include complex derivative products that are traded on margin and are not be suitable for all investors. Trading derivative products carries a high level of risk to your capital and it is possible to incur losses that exceed your initial investment, so before deciding to trade you should ensure you understand the risks involved and seek independent advice, if necessary.
Client Risk Warning
The products offered by xxx Capital Markets UK Limited ('xxx') for trading on its trading platforms include complex derivative products that are traded on margin and are not be suitable for all investors. Trading derivative products carries a high level of risk to your capital and it is possible to incur losses that exceed your initial investment, so before deciding to trade you should ensure you understand the risks involved and seek independent advice, if necessary.
Membro Desde Apr 20, 2010
814 postagens
Sep 14, 2014 at 01:00
Oh... boy, most EA we use did not has Close All Function when balance low and wait till Margin Call.
So definitely trader will just change Broker and left over the debt if this happened.
Even at leverage 1:200 , you can get -123.56%. So law suite can not happened rite if the Broker is different country with you.
In some country Forex is not legalized by the Government, can broker still cross country to get legal firm to chase back money.
Like this case, I invest 50k, then turn out I still owe them 62k.
https://www.myfxbook.com/members/ForexSeeker/contest-schi-aladdin-66/987057
So definitely trader will just change Broker and left over the debt if this happened.
Even at leverage 1:200 , you can get -123.56%. So law suite can not happened rite if the Broker is different country with you.
In some country Forex is not legalized by the Government, can broker still cross country to get legal firm to chase back money.
Like this case, I invest 50k, then turn out I still owe them 62k.
https://www.myfxbook.com/members/ForexSeeker/contest-schi-aladdin-66/987057
Anexos :
Information is Gold when come to organised.
Membro Desde Oct 11, 2013
775 postagens
Sep 17, 2014 at 03:53
I havent seen a negative account balance in forex, but it could happen like the above examples
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