I would expect their model to be one where they earn the spread, balance the longs and shorts and then hedge any shortfalls on the open market, this is where they honour stops, meanwhile they get to use your money(deposits). The ones who lost large sums got greedy and obviously chose to gamble, the lesson here is know who you are dealing with and what their policies are. Obviously, with genuine brokers unless they have done something wrong you will be on the hook when stops don't execute due to fast market conditions. Reputable brokers also don't leave themselves open to unlimited risk. But even so, I don't think carrying a huge loss is something to be happy about, unless it could have been far worse. I just recieved a form email from GFT who are forgiving all negative balances re CHF on the 15th where legally allowed. Cheers John
Dukascopy posted this. Not sure exactly when it appeared on their main website http://dukascopy.com They are "taking the high road". FXDD outside of the U.S. offers JForex (meaning "Dukascopy") accounts. One of the best pure Forex brokers around. (No affiliation, just use them in our business). HyperScalper
We will take all money from your account. But we will not take money outside of your account. Now you can trust us and we will do it all again.
Two links of interest. The first one, alleging that SNB was driven by Private Ownership, and thus motivated to take the market by surprise, after lining up all of its clients on the correct side of the trade, well, my interpretation: http://www.forexlive.com/blog/2015/...ned-no-wonder-they-de-pegged-19-january-2015/ The other, another relevant "Hitler Rant" as he also lost money... HyperScalper "Micro Scalping, and reducing Market Exposure Duration since 2013..." LOL
No different than having a bookmaker forgive your marker. Personally people should be grateful, they made a mistake and have been let off the hook, a cheap lesson. Something rarely found when the law of the jungle is the overiding culture. It will be interesting to see how many learn from this debacle. Cheers John
If someone whacks you on the head and then grab your money, would you say you need to learn a lesson, or would you say the robber needs to be locked up ? Just because the robber says to you he will only take what's in your wallet but won't take what you have at your home, because he certainly has that option, does that make it less of a robbery ?
All one needs to know is that when companies are willing to forgive huge negative balances, they must really be making money hand over fist the rest of the time. Something is rotten in Denmark.
Anologies rarely reflect the topic under discussion so it is best to stick to the facts. I am an adult, I take full responsability for my actions and their consequences no matter how ugly. Nobody has forced these people to open an account, to then fund it and to then trade whilst having been told that they are at risk of losing more than their account balances, this is all their own doing. If they didn't do their due diligence or made a poor business decission then they have put themselves at risk irrespective of who their broker is. I would be very suprised if my futures brokers forgave my losses if I made a bad trade, so I would consider myself very lucky if they did. I won't engage any further with this as past experience in dealing with you has proven to be unproductive. This is an example of cutting your losses when managing a loser. Cheers John
Of course I understand that it is good news for people who lost a lot of money if negative balances are foregiven. However when my broker does this, it will impact it´s buffers and also form a risk for persons who didn´t gamble with huge leverage. If you gamble with leverage you take a risk so you have to pay. I made a big mistake two years ago selling the illiquid second month future in the SMI instead of the first month. Losing 25k , nobody came to my rescue. It was a hard lesson, but i could´only blame myself. The same applies here is my opinion. Nobody would have given part of their profits away if the move had gone the other way. If brokers garantee negative balances for the future this will attract only more gamblers. I would be tempted to take most of my money from my account and start gambling myself with huge leverage. So for the people who are hurt I hope that negative balances are foregiven. But for me it would be a sign to take most money from my accounts and start gambling myself. Upside potential with limited downside risk. So I am curious how this will turn out. Best regards, David
People have been mislead on the the existence of stops where none existed. For that, everyone should be refunded in full what they have lost beyond the stops. What makes you think you can cut your loses if the counterparty is not willing ? Once you have dipped your finger in, you are in for the whole hog. Your lose will continue to infinity until the other party relents.