Several times. Absolute non-event. Some brokers reset your balance to zero automatically and instantly(Exness). Other brokers do it after a day or two and yet others, you have to approach support for the balance to be erased.
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Thanks for the reply mate, do you think that the pepperstone ‘negative balance protection’ would work in some blackswan event. I heard that some largest brokers said their clients wouldn’t be in debt with them before the chf crash, but ended up chasing the clients money, so I’m just wondering.
Appreciate your reply pal.
Several times. Absolute non-event. Some brokers reset your balance to zero automatically and instantly(Exness). Other brokers do it after a day or two and yet others, you have to approach support for the balance to be erased.
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Mate do you also trade with a high leverage or holding for major news event?
{quote} Thanks for the reply mate, do you think that the pepperstone ‘negative balance protection’ would work in some blackswan event. I heard that some largest brokers said their clients wouldn’t be in debt with them before the chf crash, but ended up chasing the clients money, so I’m just wondering. Appreciate your reply pal.
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I don't have specific knowledge of brokers chasing people - I suppose it is possible. That said, international litigation is very expensive and tedious so I can understand why most brokers just write off the loss. After all, if it is due to them not executing a stopout in time, they might even have a hard time proving their claim. And to do it for less that 500k would just be silly. It is worth mentioning that the threat of legal action is free...it is quite another prospect to start spending big bucks on a case, that even if you win, there is no guarantee that the defendant has the funds to pay. It would be the very definition of a Pyrrhic victory.
I have had negative balance with a couple of brokers like Exness and last week Vantage when the EURJPY went ape. I see the negative balance of -15K has been reset. I trade common leverages of up to 500. I don't trade for nbp at all - I just hold long term trades and occasionally, like when gold gaps $40(or BOJ starts their currency manipulation) there is not much to be done. It's part of trading....
I went into negative balance recently too. What surprised me is that the broker erased the debt even if they weren't explicitly offering negative balance protection..
However I'd like to mention that the money owed was a few bucks only and I don't really know how brokers handle negative balance when going hundred thousands of dollars into debt.
I went into negative balance recently too. What surprised me is that the broker erased the debt even if they weren't explicitly offering negative balance protection.. However I'd like to mention that the money owed was a few bucks only and I don't really know how brokers handle negative balance when going hundred thousands of dollars into debt.
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I believe that if the debt could be officially registered under your country's regulations, they could maybe sell your debt to a local debt agency.
But to be honest i have no idea, so im wondering too.
{quote} I believe that if the debt could be officially registered under your country's regulations, they could maybe sell your debt to a local debt agency. But to be honest i have no idea, so im wondering too.
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Not as easy as that. A registered debt can only come about after they have won their court case(in your country of residence). Until then it is a civil dispute which is essentially unenforceable - in other words, just saying something is a debt, does not make it so.
I, for one, would have a lot of serious questions about their trading model that would have to come to light. If they are running an A and a B book, can you imagine them trying to claim from you when they were holding the other side of the trade AND were responsible for the trade execution.
{quote} Not as easy as that. A registered debt can only come about after they have won their court case(in your country of residence). Until then it is a civil dispute which is essentially unenforceable - in other words, just saying something is a debt, does not make it so. I, for one, would have a lot of serious questions about their trading model that would have to come to light. If they are running an A and a B book, can you imagine them trying to claim from you when they were holding the other side of the trade AND were responsible for the trade...
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I guess unless we have some people who was involved in the 2015 crash, we hardly get the answer.
{quote} I don't have specific knowledge of brokers chasing people - I suppose it is possible. That said, international litigation is very expensive and tedious so I can understand why most brokers just write off the loss. After all, if it is due to them not executing a stopout in time, they might even have a hard time proving their claim. And to do it for less that 500k would just be silly. It is worth mentioning that the threat of legal action is free...it is quite another prospect to start spending big bucks on a case, that even if you win, there...
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Thanks pal, your words actually inspired me. I think with 3 wars going on these days, just not the era to be rich. I think I from this moment wouldn't trade a account which is more than $65000. I'm happy making $10000-$20000 per month and just live my best life. Have a good day body.
Oh yea, I'm also 100% gonna trade with a broker that provide negative balance protection.
