By now you all know the Swiss bank decided to remove their currency cap on the EURCHF which for me didn't turn out too well as my balance went negative before hitting my stops.
My broker is FxPro and they advertised with "Negative Balance Protection" on their website which they describe as "FxPro uses an automated transaction monitoring and risk-management system to ensure that a client's balance will never fall below the level of their initial deposits, protecting them from any losses beyond their original investment at FxPro’s cost." See it at https://www.fxpro.co.uk/trading/accounts/client-funds-safety
Does this mean I shouldn't worry about paying that debt back?
Not sure but I got this from my broker this morning:-
This email is concerning the CHF position(s) on your trading account and the prices streamed across the CHF pairs that have affected you today.
Today at 11:30 platform time (GMT+2) the Swiss National Bank removed the floor at 1.20 on the EURCHF currency pair which caused extreme volatility in all CHF pairs and the market in general. Over this period we saw spreads widen significantly which in turn caused the activation of price filters to stop pricing. Once pricing stopped on our main Integral price feed our backup price feed from Currenex was allowed to price. It was at this time that some liquidity providers were able to stream erroneous prices to IC Markets and execute client trades at prices they shouldn’t have.
Today IC Markets will be amending the prices on trades done across the CHF pairs with our liquidity providers. Once we have had these trades amended we will begin the process of adjusting clients accounts. This may include but not be limited to the actions below:
• Reinstatement of positions where appropriate and possible • Amendment of open/close prices on trades • Assessment of client portfolios closed due to insufficient margin • Adjusting client cash balances to reflect the actions above
IC Markets staff will be working as fast as possible to complete the above and restore trading accounts to their correct state. We appreciate your patience as we complete this.
Well, so far I read on other forums that I might be lucky as FxPro is waiving it. I haven't seen an official statement yet from FxPro itself stating that so I can't be certain yet...
This is some further info quoted from another forum regarding other brokers:
mindscream posted (from other forum, don't know if mentioning it is against the rules so I won't): It really depends on which broker you are using. Oanda has decided to protect their brand by doing the right thing, earlier poster says Saxobank is asking him to pay, FXPro is waiving it. FXCM is asking clients to pay even though they advertise this at their website.
I'm not sure which website you are reading regarding FXCM. All I have seen so far is that they might not be able to respect certain regulatory capital requirements due to 'unprecedented volatility.' Which means they don't have enough cash in the bank to fulfill regulations which is probably where Alpari found itself.
If you can PM me a link I'd be interested in reading 'the other forum' as I am now in deficit with FXCM and thought I was going to be safe for it.
11:15, restate my assumptions: 1. Mathematics is the language of nature. 2. Everything around us can be represented and understood through numbers. 3. If you graph these numbers, patterns emerge. Therefore: There are patterns everywhere in nature.
Vitautas posted: I also went negative on my LQD-Markets account. They have sent a mail and asked me to send the missing money. I will do nothing and see what will happen
Surely you don't need to send any money and they can do nothing about it, it would be foolish to attempt to go to court with this. The only thing that you lose - the broker itself, because even if you deposit another account they'll try to grip your money. Don't know whether this broker is good and if you need to sorrow ...
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