Hi all,
We seen during the CHF episode that it is very possible to lose considerably more money than you have in your account, otherwise known as negative balances.
One of the ways around this would be to set up a private limited company (PLC) and trade from there, that way if you make a mistake and incur a huge loss, you can be insulated from that loss because you are a trading company, and not an individual.
My question is, how would you be regarded if you traded as a PLC, versus and individual?
Can you still be regarded as retail by your broker, or would become one of the brokers creditors?
Thanks
We seen during the CHF episode that it is very possible to lose considerably more money than you have in your account, otherwise known as negative balances.
One of the ways around this would be to set up a private limited company (PLC) and trade from there, that way if you make a mistake and incur a huge loss, you can be insulated from that loss because you are a trading company, and not an individual.
My question is, how would you be regarded if you traded as a PLC, versus and individual?
Can you still be regarded as retail by your broker, or would become one of the brokers creditors?
Thanks