My opinion, you are liable. You signed a number of disclosures saying you accept the responsibility. Yes they should have liquidated you before it went debit. You could contact the NFA and file a complaint, but if you lose you may be on the liable for their costs to defend your claim.
I agree, filing a claim is risky. Here is a claim against velocity for a negative balance: http://www.nfa.futures.org/basicnet/Arbitration.aspx?entityid=0317696&case=08ARB52 The guy's account was 30K in the red. NFA decided against him, and he had to pay the 30K AND an additional 26K for attorney costs of velocity.
I'd wait until you receive something from the law firm in writing. A lot of fake bullshit collectors try to pass themselves off as "law firms", especially to foreign accounts where US laws don't apply. So, forget these idiots until you get something in writing. Even if it's from some US based lawyer, I'd say forget it, they're just using scare tactics on you to collect. If it's a letter from a lawyer based in Spain, then I'd negotiate for 1/2 the amount. And even then I probably wouldn't pay the scumbags a dime. They're most likely a bucketshop anyway, considering they've got overleveraged accounts with less than $3000 in funds. Sounds flakey and they were probably trying to milk you in commissions. Hopefully you learned your lesson and won't be stupid enough again to bother with that shit. You either have enough money to trade without being overleveraged or you should NOT even bother. Forget the stupid get rich quick ideas, forget trading & move on!
You're being too harsh risktaker. We all have to start at the bottom. No one comes into the wonderful world of trading with more capital than they need, or at least not many. I learned my share of lessons the hard way :eek:
I wont comment on the legalities but I will comment on the repute of Global Futures. I have account at a couple of brokerages including IB, MFGlobal and Global Futures to name a few. I have also experienced numerous other brokerages as trading runs in the family. I can safely say that Global Futures is good brokerage and is definitely not a bucket shop. They are IB for various FCMs and risk mgmt is not the domain of GF but these FCMs themselves. In my last 2 years with them, I have never faced any problem whatsoever.
hi and I am sorry for my english, I think that the Enchange (CBOT- MINIDOW) demand a maintenance margin requirement. This margins are publicated in official web CME http://www.cmegroup.com/wrappedpages/clearing/pbrates/performancebond.html. I think that if the position is below this margins, then the enchange close this position. The brokers must respect this margin, they only can put up this margins but they can´t down it. sincerely, rimbower
Don't brokers have a central reporting arena, where information is shared between them about indebted clients?