Definitely not true. Quite a few funds and institutionals got their faces kicked in as well. Irresponsible timing by the SNB IMO, but it still seems like a nickels/steamroller setup.
SNB did the right thing to protect the interests of the Swiss people given that the ECB will debase the euro with QE. Jim Rogers has warned speculators of this development long ago.
http://www.fxcmasia.com/docs_pdfs/the_truth_about_forex_trading_guide.pdf --------- 5. Can I lose more money than I deposit with you? Many forex traders use a lot of leverage, and so run the risk of losing more money than they have in their account. If this happens, your account can have a negative balance, often called a “debit balance”. In this case, you will owe money to your broker, and the broker may call in collections agencies or engage in legal action to recover the money you owe it. FXCM doesn’t think that’s very fair. We operate with a No Debit Balance Guarantee. If your losses become too large, our system will automatically liquidate all open positions immediately at the best available price. Typically, the system can get you out before your account would become negative. In the rare case where it cannot, FXCM will credit your account back to zero. You can never owe FXCM money due to trading losses ---------
BTW thats the ad I see on this thread from FXCM. Mentions "risk to lose all deposited funds". Does not mention risks beyond that.
Nice, I was nit aware of this, still a zero account but better. If I was aware if this and chf pegging I'd of took account back to 1k bet hard on EC short dratttss. Thats nice to know as I am with fxcm, thanks
The fund was a 900mm fund and traded a very volatile strategy. He's the only casualty. The bank pnls while large are within the black swan type pnl profile of a typical Sellside desk. Their bonuses will be hurt but nothing as large as the whale trade at JPM or other famous blowups. It's primarily retail who was punting in large enough to blow up.
I'm wondering are there only talks about losses, ruined accounts, insolvent funds and brokers, etc. Anybody there who turned that event in their favor? Would really like to find out was it a lucky shot or what's unlikely conscious decision... Just found that stuff from my broker, enjoy https://blog.hotforex.com/hotforex-...355-pips-in-few-seconds-while-selling-usdchf/
This article perfectly makes my point : http://www.theage.com.au/business/markets/the-dark-underworld-of-forex-trading-20150121-12uoi9.html Which means again, anyone who took a steep loss on any chf positions when the peg was removed should look very hard at where their brokers claim they got filled and if you find evidence that the broker could have filled you at much better prices then you have a solid basis for arbitration and an agreement to lower your loss or cover your negative balance to some degree.