Chesapeake big loss - question

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1

Interesting question here. I had 5 shares in Chesapeake that Iā€™ve been trying to get rid of in light of their current situation. However, trading was suspended so I couldnā€™t sell them. However, once trading was reactivated my stop loss kicked in. Butā€¦it made a whopping loss of Ā£150.

Hereā€™s the question, what would have happened if I only had Ā£20 of funds in my account???

I did consider moving all my money out of this account just incase the shares fell by 50%, to avoid this but I didnā€™t. Be interested to hear what the situation would have been in case a similar thing arises.

Thanks

Matt

2

You would have been margin called and the position would close automatically.

2 Likes
3

Absolutely, but if it closed with a Ā£150 loss and there was only Ā£20 in my account do 212 just take the Ā£130 loss???

4

I believe you would have been charged the remainder to the account you have linked.

5

Hmmm interesting. I was always told they were completely separate. Letā€™s see if we get an answer from 212.