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

[Ghost_of_Blotto]

What has money grabbing got to do with selling anything ?

People borrowed CHF for a 1-3 day term, collateralised by the e.g. EUR, USD, CAD they would purchase with the proceeds from the sale of the borrowed funds, then mewled when they couldn't afford to meet their voluntary obligation to repay the loan in francs.

So Drew's aphorism is appropriate - people sold what they had borrowed, didn't own and couldn't repay. The only way to repay a CHF loan with no CHF income or assets is to go to the market and purchase CHF - at the market rate.

I don't understand your purpose in posting here. I refer to your comment "Being able to see prepositioning is the only solution there is." Noted that you give no detail, but cannot see an upside in even stating this - for one it won't be believed by nearly all, and it draws unnecessary attention. I'd estimate that the people who can truly see prepositioning in the market number fewer than 100 worldwide. There are many fairly smart, experienced, successful (7 figures / year) traders who can't consistently identify this prepositioning (or haven't noted the evidence that this exists in very liquid markets).

Frankly what you allude to belongs to the handful of independent speculators who have earned 9 figures or higher from their efforts. Difficult to reconcile that someone who has the potential to belong to this class, or at least do extremely well by positioning trades in the direction of their intent, would be spending valuable time arguing with morons on the Internet.

 

[traderob]

Hope this webinar helps some of you...Jan 26, 2015 at 4:15 pm EST for 1 hour



Tax treatment for forex and deposit losses after SNB's surprise policy change
26 JAN

With forex, you can have your tax cake and eat it too with ordinary losses or lower 60/40 taxes on gains.
Jan 26, 2015 at 4:15 pm EST for 1 hour
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Join Green NFH CPA and forex tax expert Robert A. Green in this Webinar.

If you are one of many who got caught on the wrong side of the forex trade when the Swiss National Bank (SNB) surprised the markets with a huge policy change, you probably incurred significant losses. In this Webinar, Mr. Green will explain how to handle these losses on your tax returns. He will also explain how you can elect to use lower Section 1256(g) 60/40 tax rates on gains.

F

Robert Green: genuine expert on trading law issues.

 

[benwm]

Robert Green: genuine expert on trading law issues.

Agreed. Robert has done some great work fighting financial transaction taxes.

 

[ExperiencedJoe]

I don't understand your purpose in posting here. I refer to your comment "Being able to see prepositioning is the only solution there is." Noted that you give no detail, but cannot see an upside in even stating this - for one it won't be believed by nearly all, and it draws unnecessary attention. I'd estimate that the people who can truly see prepositioning in the market number fewer than 100 worldwide. There are many fairly smart, experienced, successful (7 figures / year) traders who can't consistently identify this prepositioning (or haven't noted the evidence that this exists in very liquid markets).

Frankly what you allude to belongs to the handful of independent speculators who have earned 9 figures or higher from their efforts. Difficult to reconcile that someone who has the potential to belong to this class, or at least do extremely well by positioning trades in the direction of their intent, would be spending valuable time arguing with morons on the Internet.

You are assigning mythical status to the ability to see because you can't see yourself. But everyone can see if they have enough experience and given enough time. I reckon there are plenty of people who can see. I came across a couple here who shown indications of being able to see. I can't remember who they are. I have no interest in what other people know because I am satisfied with what I know.

Being able to see doesn't mean you have made it. They can run you out all day long if they so choose, or they could wait you out. Their profit is assured and waiting a while is no big deal. But they can no longer out-wait me, and occasionally they seemed to me a bit too desperate to move.

Profit is a function of capital. Not having a large pile of it means it remains a slow grind even if you can see.

As for playing with internet losers, well, maybe it's fun. I have no strong need for anyone to believe my stuff. It makes no difference to me.

 

[J.P.]

The best advice on this thread:

Get things in perspective. Nobody died. It's true that whatever doesn't kill you makes you stronger. Redouble your efforts. You've got your health, hopefully... Some of the older traders on here have money in their bank account but their health is shot. They'd swap positions with you if they could because you can always recover your bank balance.

 

[marketsurfer]

If large number of people are caught out by the risks, then the fault lies with the shop for not sufficiently informing their customers. In this situation, the customers are entitled for refund, because the "products" sold to them are beyond their ability to use and not fit for purpose.

An analogy for this situation would be a shop selling anti-tank missiles to people and claiming the small prints signed by the customers relieves the shop from any responsibility. This argument cannot stand up in court. The shop is responsible if it mis-sells a product. The effect of this is to mislead.

In fact the financial "industry" is well known for the frequent practice of mis-selling products. This case is but another. Like other cases, in the end, the customers will be compensated.

Yes, you are correct. However, the typical FX plunger is a third world or eastern euro striver without the ability or resources to fight.

 

[marketsurfer]

Good questions. Well, I wish we could agree that "could" is not the same as having any significant probability at all, given my trading style, and given that I would be unlikely to choose a CHF Currency Pair due to its general lack of volatility (except once every decade or so...)

Yes, I reliably "grab" anywhere from 1.8 to 5 pips at a time, using highly specialized triggering software, automatic target placements, highly tuned analytics, all designed for "micro scalping" with "win rates" of about 97%. Yep, that's what I do... So, to make it "worthwhile" on each "strike" it's best to push up Lot Sizes. But I acquire Lot Sizes by stacking staggered Limit Orders, not all of which are filled. This is a VWAP optimization technique similar to what Market Maker does on the Book.

Yesterday one trade was in and out of the market with a 2 pip profit in 1.5 seconds. Now, that's ridiculous, but on LMAX this is what is possible. It's not the best way to trade, but sometimes things are just that fast.

So, yep, that is precisely what I do, but I invented all of it myself; there's nothing else out there anywhere, which can reliably permit micro scalping like that for "normal" "retail" traders.

Good Trading, or should I say, Scalping?
HyperScalper

EDIT: added the image of that scalp I referred to.

I like this. Are you US based?

 

[hyperscalper]

I like this. Are you US based?

Yes, unfortunately I'm U.S. based, but I have partnered with a European client whose company holds the accounts in these brokerages. Otherwise, I would be "SOL" (shyte out of luck...). However, just an hour or so ago I was looking into Dukascopy's "white label" partners. I found one or two who have United States on their list, since most of them disallow U.S. personal accounts.

No LMAX brokerage partner I know about allows U.S. clients. Some Dukascopy partners do that, so if you PM and follow up on it, and somehow get your hands on a Dukascopy account, then I can royally fix you up with some collaboration using extreme software. I'm no longer client hunting, as we have our own prop business, but always willing to help if I can..... Just use a search engine.

PM me or search engine my handle, since this is off topic, and we'll talk. I see you are U.S. east coast so you have a challenge getting access to either of the LMAX or Dukascopy brokerages I use, but "creativity" can go a long way maybe...

HyperScalper

 

[ExperiencedJoe]

Yes, you are correct. However, the typical FX plunger is a third world or eastern euro striver without the ability or resources to fight.

Not convinced unless there are statistics. Playing market casinos is a preserve of rich westerners. Online casinos best work in places with well developed infrastructure. But I think too many people are too stupid to know what's happening. So they would let it pass as just bad luck, when in reality luck had nothing to do with it.

 

[marketsurfer]

Not convinced unless there are statistics. Playing market casinos is a preserve of rich westerners. Online casinos best work in places with well developed infrastructure. But I think too many people are too stupid to know what's happening. So they would let it pass as just bad luck, when in reality luck had nothing to do with it.

False. Retail FX is the domain of third world and beat down estern bloc strivers.