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As popularity has grown for Forex Trading and Spread betting, so has the number of platforms available on the internet. The advancement of broadband speeds has made trading possible, there is also the added spread betting forex uk of tax free gains.
Over recent years, with increasing numbers of online traders, this area of financial exposure and risk has increased. As a result, there has been an alarming rise in legal disputes, particularly in areas of high spread betting forex uk volatility such as major currency pairs subject to large price fluctuations.
Mostly this is day trading, some traders take positions for a spread betting forex uk few minutes, others for much longer. The potential for profit is high, with the opportunity to significantly increase the size of your trading account in a very short period of time.
However the losses can be catastrophic. All deal tickets and live charted price movements over accurate times scales, are critical in proving spread betting forex uk positions have been correctly closed. These will often be required to be given in evidence where a margin call has occurred. The company will give plenty of warnings of the risks on their website, however without Guaranteed Stops in place that guarantees a stop order price they will claim to close a position out as near as possible to market levels at the time.
This, in times of high volatility or as a result of a dramatic news event, can have a devastating effect on your account balance, wiping it out and a potential further demand for the applicable loss that can extend to thousands of pounds more. Companies offer varying levels of service. Many of these are reputable, UK based and FCA regulated, however there are others that are not and may be registered offshore.
Ultimately these are short term loans made by the trading company to allow you spread betting forex uk speculate on a much larger position. Some companies may claim to be able to make you a fortune, however this is unfortunately a numbers game with few winners. These traders tend to have spent a lifetime career in the futures market.
This will often be as a result of a position that has overextended your margin available. The firm will normally attempt to contact you to request a further cash transfer.
If they are unable to do so they will put your account on stop and automatically close you out of your positions. It may be that your cash deposit has spread betting forex uk entirely depleted or possibly your account losses have gone beyond this. Timing and responsibility for this will determine the loss.
You are obviously now unable to trade at all, and this may leave you helpless. The company could prove difficult to contact and not be very forthcoming. They may well put the matter in the hands of their lawyers spread betting forex uk you could spread betting forex uk placed in the onerous position of waiting for them to contact you.
This can result in a letter prior spread betting forex uk issuing proceedings against you in an attempt to recover all the money. This will often require a response within a short period of time. Alternatively you might want to pursue a claim against the company yourself. This maybe for failure to complete a certain transaction within a required timeframe, such as a limit order, a negligence claim. Perhaps you are suspicious of fraudulent behaviour.
This may require an undertaking by the company to submit all recorded transactions. If a claim has a reasonable chance of success, then it needs serious consideration.