I thought this would be more of a risk management question, but since I haven’t gotten any responses yet over in that neck of the woods I thought I’d try here.
I was just reading through the customer agreement of a broker I’m researching and came across this little diddy:
“Due to market conditions or other circumstances (broker) may be unable to close out Customer’s position at the level specified by Customer, and Customer agrees (broker) will bear no liability for failure to do so.”
Is this something that’s standard in all customer agreements or should I run screaming from this broker? May not be able to close open positions? Are we talking about a couple of pips or something that could potentially drain my account and then some?
This is the first broker I’ve looked at closely enough to read their customer agreement. To be honest I’m a little put off by the total one-sidedness of it. Mistakes on their part, Mis- quotes, power failures, signal loss, internet service Interruption, acts of God, Alien Invasion, you name it, they’re not liable for any of it. But God help you for any little mistake or oversight you make. And to read the whole thing, it almost seems like once you sign at the X they can pretty much do whatever they want with your account in your money. Okay, maybe that’s a bit of an exaggeration, but still, WTH?
