Thread: The One Nobody Talks About

The promisary note you signal waives your LLC protection and holds you accountable. That is exactly why I called ATC - to get out that.

Originally Posted by ;

This is the reason why you should trade via a LLC company account and not a personal account.

I will present my ideas on this. When you have a look at enormous astrophic events such as 9/11, then the EURUSD just moved 200 pips that day! And the week finished ordinary. So although 9/11 was not a nuke, there was a lot of uncertainty damage the US would sustain. Yet the market stayed stable - an ideal illustration of how the majority of its transaction are not speculative, bur are playcheck translations.

Alright, Lehman brothers and Bear Stearns collapses - both saw large moves and w/ Lehman we dropped 6 percent of the entire Currency Market marketplace - it might too have been a bomb explodng.

Therefore I am just hoping to build a context for what we may expect in extreme catastrophe.

Originally Posted by ;

That is exactly what I really don't get! FXCM clearly advertise never cover a debit balance but Clause 23.1 E states, in bold, You will always be liable for the payment of any debit balance on your account and you will be liable for any deficiency remaining in your account in the event of the liquidation thereof in whole or in part by your or them.

So they advertise one thing and cause you to agree to a different. That is lovely.

Originally Posted by ;

Should they simply hold your trade till they decide to fill your stop a couple of ticks later, wouldn't it be somewhat tricky for them to try and sue you for it??

That is a really good question. I think that'd be the direction to go in order to fight it.

But at the US they don't have to sue you in order to bug you with set calls, they can simply market your imaginary debt to a collection firm and allow you to fight it out with them.

Originally Posted by ;

The promisary note you signal waives your LLC protection and holds you accountable. That is why I called ATC - to get out that.

Sure, but most brokers don't. Don't sign up with ATC, there is only a thousand others. I would doubt this contract's legality. A promissory note will require a specified amount (somewhere), there is a lot of gray area you could call into question.

Edit:

Originally Posted by ;

Alright, Lehman brothers and Bear Stearns collapses - both saw large moves and w/ Lehman we lost 6 percent of the entire forex marketplace - it could too have been a bomb explodng.

There is a massive difference between a big move and also a gap w/ no trading. Counter parties are still offered by A move. Have you ever noticed a 200 pip difference during the middle of a trading day? Say 2 GMT to 20 GMT?

Of course past performance isn't indiive of future outcomes.

94939

Originally Posted by ;

Hey daytrading, how are you currently?? You make a fantastic point.
If a broker doesn't execute your stop, then says you owe a large debit.... They might need to demonstrate that there were no market orders to the entire 1000pips. Is not it unlikely that everyone could make all of their pending orders vanish all at once. There should be plenty of orders being filled along the way.
If they just hold your trade till they choose to fill your stop a couple of ticks later, would not it be a little tricky for them to try and sue you for this??
And should they widen their disperse...

what if a broker CANT execute your order. It is possible for a situation to arise where there are no accessible orders to coordinate with your stop with anywhere within 200 to 300 pips. I mean who is going to have an order placed 300 pips below the current price? Im guessing a limited few. Such scenarios could arise. Remember that a priority method is for orders, im not sure but I believe that it goes market orders first, and limit and stop orders come next. So they would fill out the market orders before they stuffed your stops. And if there arent enough orders to go around.... You are screwed. It's possible to blame the broker for this type of thing happening. It is how the market works.

Additionally, a BIG thing to remember: NOTHING IN FUTURES IS EVER GUARANTEED

material happens. This is how the world works.


EDIT:

yet another thing, keep in mind that gaps could only occur when someone decides to sell/buy at a certain price and somebody else decides to take the opposite side of that contract, making it a reasonable price. In this instance, it is a move or even a tick. Is within the weekend or between bars. A gap is arbitrary, it is only the tick, but it happens when a new pub opens. The exact problem can occur with a tick like a gap. They're the same thing represented on a chart.

94952what if a broker Can't execute your order?? Gt;gt;gt;gt;

What would it take for it to take place?? There are a lot of prevent, tp, and pending orders on each side of the price, and in the two directions. Can plain out yours with them through all?? When a bomb went off
It appears they would have to widen the spread to hundreds of pips for it to take place. That would skip a ton of orders in one blink. But then sue you for this?? Might have to assert that there's risk for the broker in addition to for the trader. I think we should go and re-read our contract.

94952

Originally Posted by ;

The promisary note you sign waives your LLC security and holds you accountable. That is why I called ATC - to get out that.

Well, then they would have to experience a danish court in my situation. And I would be very suprised if this court didn't let the to go screw themself.

94952

Originally Posted by ;

suppose that when a broker Can't perform your order?? Gt;gt;gt;gt;

What would it take for it to take place?? There are a lot of prevent, tp, and pending orders on both sides of the price, and also in both directions. When a bomb went off, then can clear them through all with
It appears they'd have to expand the spread to hundreds of pips for it to take place. That would skip a bunch of orders in one blink. But then sue you for this?? May have to argue that there's risk for the broker as well as for the trader. I think we ought to all go and re-read...

in this type of situation, everyone is going to be trying to get out of the market. But there are a limited number of ordersboth market and pending. Let's say you're in a buy and the market drops 500 pips, shooting directly through your own stop. There will be a lot of buyers trying to sell their rankings, along with yours. A majority of these individuals will receive their orders filled, but some wont. Are the ones im talking about. In this case, if you're using leverage/margin and you're risking that a 500 pip transfer will wipe out you, you can have a debit in your account. Bear in mind, you're playing with somebody else's money when you utilize leverage and margin. And if you look at most clauses that speak about ceases, they state your buy stop will trade at OR BELOW the specified price. You arent GUARANTEED that the particular price on the order. This is called slippage, many of you know that. Slippage is NOT illegal, is NOT a trick. It just happens. Now, wehn you're currently playing with the money of somebody else, you're accountable for this. So in the event that you get into a situation like this, you can, potential wind up having to cover the broker money.

Now, with that said, with little sums of money, this isnt likely to be a issue, because, most probably, you will get stopped out eventually. On a 5K account, you will probably owe a hundred bucks. But while you have big orders, reductions stopped out, seeing as everyone is competing for the orders you're, AND you. So most of the poeple on this forum dont have to worry about this issue, unless they are money managers or instituional traders, then again, these people would already know how these situatuions would perform.

94952Actually instances because of a margin call.


However, within this thread we're discussing ridiculous news, like the entire worldwide bank system collapsing.... Or the Euro suddenly becoming unworthy (don't ask me )

94952

Originally Posted by ;

There's a huge difference between a big move and a gap w/ no trading. A move still offers counter celebrations. Have you ever seen a 200 pip gap during the midst of a trading day? Say 2 GMT to 20 GMT?

I don't even understand how a gap through normal trading hours will be possible [at forex] because market is liquid there are always counterparties for your stops. Gap would indicate someone would eat all of the liquidity or that for some reason the liquidity would disappear. The most striking news usually don't happen so if you have a stop, you will be filled at the market.

I am trading ecn [IB] and at most volatile news instances the difference between my cease and fulfill is about 10 pips.

Edit: was anybody trading ISK at the instant if their bank basically collapsed? How were the suits?

94952Another thing: we also say the market but Foreign Exchange isn't a single central market - it is 8 or 6 large banks connected, each creating their own independent markets.

So, it will really depend on what your liquidity providers do (throughout your ECN)... the orders on your portal site will probably be significantly different from ECN into ECN.