In the website...Quote:
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Money holdings, or any securities which you are holding, are insured. But busy commodity futures currency contracts, in addition to investment contracts and fixed annuity contracts which are not filed with the SEC are not insured.Quote:
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How I read this (that might be wrong, consult w/ an attorney prior to taking actions based on any information you receive from the net) is...
Lets say you have got a account w/ a brokerage that provides multiple trading avenues. You can exchange currencies and maintain those places, you can trade stocks and maintain those places, etc.. Any places you are holding in currency in the event the brokerage goes belly-up are effectively lost. Any places held in inventory would not be. Any money sitting in your account ought to be covered up to the limits.
Unfortunately that brings up more questions than it actually answers. What exactly would be missing? What happens when you are investing on margin (would you eliminate the full price or just the margin safety)? What happens if you are trading intra-day along with the trade is both money and an uncovered transaction during the payoff interval?
It becomes even more complied once you start reading thru broker agreements.
I discovered this PDF here:
http://www.pinnaclevaluefund.com/rep...t(26).indd.pdf
In accore with it, securities (or other eligible transactions) may not be eligible if they're held in a margin account (versus a money account). Couple in the possibility that a major market move might also bring about a simultaneous margin call... along with the securities you would sell to balance the position might not be there, leaving you holding the whole bag. If true, you should always transfer long term holdings into a money account.
The way that would effect a margin-based forex exchange... is a whole different story.
As you can view this SIPC item becomes unbelievably complied, very fast. Add in limits, other insurers, their limits, contract and agreement particulars, etc, it is not entirely clear what you can really count on. Obviously an SIPC insured emblem should not blindly lead one to think you are safe unless you have done your homework.
As for fraud...
Good luck.Quote:
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