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Old 17.01.2015, 21:56
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In Need of Advice (Huge forex trading loss)

I had a large amount of money placed in a forex trading bank and due to the SNB's recent decision, I saw all that money disappear and my account go into the negatives by more than quadruple that amount. The bank is saying I must pay this amount otherwse it will go to the debt collectors. There is no way no how I can pay it.

Is it worth fighting against the bank? Or file for bankruptcy.
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Old 17.01.2015, 22:00
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Re: In Need of Advice (Huge forex trading loss)

Not sure what the exact transaction is that you did? Option, Forward?
Fighting the bank will be difficult as Im sure their T&C will have their *** covered.
If it is a specific transaction that does not count as normal banking business you probably have signed something and that should lower your possibilities of suing the bank
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Old 17.01.2015, 22:01
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Re: In Need of Advice (Huge forex trading loss)

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I had a large amount of money placed in a forex trading bank and due to the SNB's recent decision, I saw all that money disappear and my account go into the negatives by more than quadruple that amount. The bank is saying I must pay this amount otherwse it will go to the debt collectors. There is no way no how I can pay it.

Is it worth fighting against the bank? Or file for bankruptcy.
You need to come to a repayment agreement with the bank. Tell them you don't have the money but are willing to pay by instalments with a reasonable interest rate. You can't fight the principle that you owe them money and you don't want to declare bankruptcy.
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Old 17.01.2015, 22:09
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Re: In Need of Advice (Huge forex trading loss)

Trading is hugely risky- can go your way or against you- as in this case. I am sorry you are going through this, but you were very poorly advised about risks.
I'd make an urgent appointment with the most senior person at the Bank to discuss options. Bonne chance.
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Old 17.01.2015, 22:12
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Re: In Need of Advice (Huge forex trading loss)

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but you were very poorly advised about risks.
uhm....why was he?
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Old 17.01.2015, 22:51
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Re: In Need of Advice (Huge forex trading loss)

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uhm....why was he?
because he lost his money more than 5 times over...
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Old 17.01.2015, 23:03
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Re: In Need of Advice (Huge forex trading loss)

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because he lost his money more than 5 times over...
That doesn't mean he didn't know the risks or that he was given bad advice. Huge forex trading companies have gone bust over this, this doesn't mean they didn't know what they were doing.
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Old 19.01.2015, 07:12
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Re: In Need of Advice (Huge forex trading loss)

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uhm....why was he?
Because it seems from the OP that he lost more than he could afford.

OP, so sorry for the predicament you are in, you can only talk to the bank, and maybe also to a good lawyer. 300 CHF or so may be money well spent here. Good luck.
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Old 19.01.2015, 08:53
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Re: In Need of Advice (Huge forex trading loss)

Though this is probably little comfort:
You're certainly not alone, there's a reason Swissquote is booking 25mln in provisions.

It's probably best to do as the others already said:
Hire a lawyer, devise a plan and present it to the bank. It sounds as if your original account size was 6 figures, they must be aware that they won't get everything you owe them.
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Old 19.01.2015, 09:50
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Re: In Need of Advice (Huge forex trading loss)

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Because it seems from the OP that he lost more than he could afford.
So? Haven't you read the thread?
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Old 19.01.2015, 11:14
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Re: In Need of Advice (Huge forex trading loss)

For a lively discussion of what Saxo Bank did to its f/x customers, see this blog and comments:

http://brontecapital.blogspot.com.au...bank-down.html
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Old 19.01.2015, 19:38
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Re: In Need of Advice (Huge forex trading loss)

I'm really grateful for all your advice & input. I forgot to mention that I went back to studying so I have not had any income lately. This is what makes paying it off seem impossible and bankruptcy the only option. I put what I had saved while working into an option which was supposed to be virtually risk free. I'm still trying to process what has happened/ is happening
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Old 17.01.2015, 23:38
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Re: In Need of Advice (Huge forex trading loss)

If you sold everything you own and also paid your next two months salary to the bank, would you be able to cover it? If so, do that. If not, file for bankruptcy.
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Old 18.01.2015, 11:11
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Re: In Need of Advice (Huge forex trading loss)

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If you sold everything you own and also paid your next two months salary to the bank, would you be able to cover it? If so, do that. If not, file for bankruptcy.
Seems to be a lot of thinking behind that, Phil. Can you elaborate a bit? I'll be grateful for the education.
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Old 18.01.2015, 14:23
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Re: In Need of Advice (Huge forex trading loss)

Hey - no kicking a guy when he's down. Everyone makes mistakes.

Just remember it's only money. I would take a deep breath and re-read your contract with a fine-tooth comb and then try to get legal advice on whether it abides by Swiss law (see if there's room to move). Then, schedule a meeting with your bank to negotiate. I'm sure you're not the only one in this position right now. Explain to them the situation and see if you can agree on something workable. If not and you don't think there's any room to fight them from a legal front, *then* I would think about other options.

Just make a plan, check with a few people that it makes sense and then go through with it. Even with bankruptcy from what I've read, they're required to leave you with a living wage - so that's worst case right? Everything else is upside.
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Old 18.01.2015, 15:21
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Re: In Need of Advice (Huge forex trading loss)

sorry to hear about your losses Toxedopants. FX sucks. if possible try and remember it is only money and you will have it solved.

I had a friend in the Netherlands who had a similar story when the internet bubble burst 15 years ago. He went bankrupt as a person and that was not nice. After a couple of years on the minimum wage level he was cleared for his debts. He went back in the internet business and now lives on one of the Islands in the Caribic (as a wiser man).
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Old 18.01.2015, 16:21
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Re: In Need of Advice (Huge forex trading loss)

Also, if you happen to be in the UK, going for an IVA may be an alternative to bankruptcy: http://en.wikipedia.org/wiki/Individ...ry_arrangement
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Old 18.01.2015, 22:21
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Re: In Need of Advice (Huge forex trading loss)

I didn't really understand the losses either, even after glinaa's explanation. So I went searching and found something a bit more in layman's terms that might help anyone wondering how leverage/spread betting really works:

"...if you place a bet worth 1,000 with a margin rate for the applicable tier of 5%, you only need to provide position margin of 50 to place the bet. If the price of the product moves against you by 10%, you will lose 100. This is double your initial investment in the bet."

Most people of course play with larger sums of money. The currency swing of the last week was pretty substantial before the dust settled, so it's not hard to see how even non-rich folks could have lost a bundle.
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Old 18.01.2015, 22:32
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Re: In Need of Advice (Huge forex trading loss)

There's quite a bit of discussion considering that the OP hasn't added any details or replied since the first post
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Old 18.01.2015, 22:34
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Re: In Need of Advice (Huge forex trading loss)

Well yes, but he is an 'old' and known member of EF.
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