I live in the UK and I am considering starting to trade on the stock market, having opened an account at a brokerage firm.
I am considering using it to speculate on short term period with leverage. Obviously this is risky and may lead to lose more than originally invested.
In order to mitigate that risk, I was planning to create a limited liability company and to retitle my trading account using the credential of that firm.
The idea is that if my account goes into negative territory, I am not personally liable for reimbursing the broker for the losses beyond my account value.
Do you think this is a viable idea?
My question relates rather to how to protect against so called "flash crashes". It is possible to devise trading risk strategies that account for "ordinary" (normal speed) price changes, but i want to be able to have a protection against very large instant moves (think swiss franc in jan 2015).