Well - thanks for all the smart a**e answers!
Do you honestly want to tell me that if the worst came to the worst i.e. the whole lot did a reversal (I’m talking about stocks) and came crashing down this is not going to have an effect on the forex markets (and the safety of your capital). If you don’t think that forex is linked in some way shape or form to stocks and commodites and you are trading forex in isolation then I can tell you that you are sorely mistaken - and if you think I’m talking s**t - then just do yourself a favour and have a look at Gold, Silver, Oil, and the major indices just for a day and compare them to what happens with the USD - and you won’t be so quite so smug.
I mean - do you think that it is impossible for the dealers / brokers to maybe, just maybe, be ‘on the wrong side of the fence’ if this were to happen? They can’t lose money and go broke? So - your capital is guaranteed? Has anybody actually gone to the trouble to find out exactly WHAT this means?
Anyway - the point is - and I’m not saying that it’s going to happen - I don’t have that kind of experience or insight - but there sure are a whole lot of other people (WITH that kind of insight and experience) that think so - and I just wanted other peoples opinions on the subject. Put it this way - I sure hope that if it happens - you are in a loss situation at the time and you have then lost nothing - because if you are sitting in profit situation at the time - I’d like to hear the stories from people who are having trouble getting their GUARANTEED capital and any profits on the table back from their dealer / broker.
(Yes - I know I supposed to calm down here)!
Let me put it in easier to understand english:
Let’s say I have a Euro denominated account and I open an account with 10000 Euro. Let’s also say that over a period I make a profit of 1000 Euro. The dealer / broker now owes me 11000 Euro. No problem so far EXCEPT that the dealer is in the USA i.e. USD based. Now ‘the sun falls from the sky’ - and the USD becomes even more worthless than it is now - would you not agree that now the dealer / broker has to come up with a lot more USD to send me back 11000 Euro? And how many thousands of accounts are opened in this way? Are you telling me they have contingencies in place for this? It might interest you to know that on a particular day in May (this month) something like 429 000 Chinese opened accounts like ours IN ONE DAY. Do you think that China is the only place where this is happening (maybe not on the same scale but you get the picture).
And - OK - so I suppose I am answering my own question for myself - which was ‘Will a stock market crash affect forex traders?’ - I think so - if you don’t - well - good reasons and a bit of detail would have been nice - condescending anwers don’t quite cut the mustard.