FINRA Arbitration for Derivatives Losses

Some of the most complex types of investment are those involving derivatives. Though they can be lucrative and generate substantial returns, they are also often risky and may not always be a good fit for every investor. 

If you suffered losses after investing in derivatives, Wolper Law Firm, P.A. could help you recover them by pursuing a complaint with the Financial Industry Regulatory Authority (FINRA). 

Below, we go into further detail about what derivatives are, why they are risky, and how you could get your money back in arbitration with help from a FINRA lawyer

What Are Derivatives?

Derivatives are a form of financial security that derive their value from some type of underlying asset. Changes in the price of the underlying asset, such as stocks, currencies, and commodities, are the forces responsible for giving value to derivatives. 

Derivatives are often used to hedge a position to direct a countervailing bet away from the main focus of an investment. They also allow some investors, such as those with exposure to fluctuating exchange rates between currencies, to hedge against these forces while entering foreign markets.  

Some of the most common types of derivatives include:

  • Futures
  • Swaps
  • Options
  • Forwards

As an investor, going with derivatives can allow you to lock in favorable prices on long or short positions, as well as mitigate some risk. However, they’re not without risk—and in some ways, like many alternative investments, they’re even riskier than traditional investments. 

Because derivatives are based entirely on underlying assets without intrinsic value of their own, they can be subject to rapid fluctuations in value. Furthermore, because derivatives are often leveraged investments, there’s always the risk of accumulating significant losses. 

When Can You Recover Derivative Losses in FINRA Arbitration?

With any kind of investment, there’s always an element of inherent risk. However, when your derivatives broker violates their fiduciary obligations with fraudulent actions or other problems occur, you may be able to recuperate losses through FINRA arbitration or mediation. 

Some of the most common disputes that lead to FINRA arbitration include:

Crucially, the alleged problem must have also occurred within the previous six years. Interested to learn if you could qualify for FINRA arbitration? An experienced attorney can help. 

Contact a FINRA Arbitration Lawyer Now

Investment in derivatives can be complex. If your broker’s negligence or misconduct caused you to suffer considerable losses after investing in derivatives, you may be entitled to financial compensation. 

Contact a FINRA arbitration lawyer at Wolper Law Firm, P.A. to find out whether you have grounds for a complaint. Fill out our secured contact form or call our office at 800.931.8452 to start working on your complaint as soon as today. 

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]