EUR/CHF wipeout/margin call ... negative balance ... what to do?

Discussion in 'Forex' started by Pentaquark, Jan 18, 2015.

  1. Pentaquark & Snbmess - I am in the same boat as you are, but for a much larger multiple of my initial deposit (and probably a larger absolute sum as well). Please contact me directly for more info - I have been consulting with several lawyers on this issue.
     
    #71     Jan 19, 2015
    jamelliott and VPhantom like this.
  2. Johno1

    Johno1

    Good luck with that mate. On the surface it sounds like you might have a valid argument. This is what the thread is about, people helping each other thru sharing information.
    Cheers John
     
    #72     Jan 19, 2015
  3. newwurldmn

    newwurldmn

    "Only when the tide goes out do you discover who's been swimming naked."
     
    #73     Jan 19, 2015
  4. I think this was more like a Tsunami. The water recedes more than usual, fish are flopping around, and then huge waves come in destroying everyone and everything in their path.
     
    #74     Jan 19, 2015
  5. JTrades

    JTrades

    As The Economist puts it, "IN THE world of central banking, slow and predictable decisions are the aim."

    Three days before "the Tsunami" on Jan 12, "We took stock of the situation less than a month ago, we looked again at all the parameters and we are convinced that the minimum exchange rate must remain the cornerstone of our monetary policy," Jean-Pierre Danthine, SNB

    If a company behaved like this there'd be lawsuits from all directions.
     
    Last edited: Jan 19, 2015
    #75     Jan 19, 2015
    VPhantom and TraDaToR like this.

  6. Here in Canada with Oanda it is worded in such away that they are promising the integrity of their own system to close you out before your account goes negative. I would wonder if Canadian investors could argue that Oanda is forced to cover a negative balance and isn't really being honourable at all by offering to cover chf related negative balances.

    Check carefully the risk disclosure for your country and for your broker.

    http://fxtrade.oanda.ca/legal/risk-warning

    I actually was always of the impression that they would cover a negative balance.
     
    Last edited: Jan 19, 2015
    #76     Jan 19, 2015
    VPhantom likes this.

  7. Not really. The pair dropped like 2200 pips, so if you get filled on the low the account would be ~1200 in the red in your example.

    I understand many people were short CHF for a tiny bit of carry, with insane leverage to make it worth it a little more. Madness.
     
    #77     Jan 19, 2015
  8. Johno1

    Johno1

    You mention the first level that it traded at, the main issue would have been the volume traded at this level. From what I understand it just blew through these levels. So really no chance to get out.
    Cheers John
     
    #78     Jan 19, 2015
  9. What are you talking about. The low was 0.9704 mid-px. There is no possible way you would have produced a loss of 30k with a 10K position. Even a fill @0.0000 would result in loss of only ~$15K.
     
    #79     Jan 19, 2015
  10. Johno1

    Johno1

    I was talking in general about the situation. e.g. fast market conditions
    Cheers John
     
    #80     Jan 19, 2015