[Help] Issues with FX CFD Provider!

strangerjun

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Was trading with one of the brokers and these happened:

-My open positions which were at an overall loss were forced closed due to technical error on their platform not due to insufficient margin whatsoever
- The loss was realized, initially, the losses came up to be 6 figures erroneously :eek:
- There was no communication from them when such outage occurred leaving me distressed (seeing 6 figures losses and entire account wiped out)
- During the outage, I couldn't trade at all and the market would have moved during the disruption
- After that, positions were reopened and I was puzzled on new positions opened. Before that, there was a complete blank on the platform because my positions were liquidated. I was confused and did not know what to do (should I trade normally or wait for further advice from the broker?)
- The broker later clarified that due to a technical error, they eventually rectified the mistakes and reopened the positions at the same price at the point when they were closed. Losses were adjusted to the actual amount



The broker told me it is materially the same had the positions were to left open versus it was liquidated.

Please advise the recourse.

:(
 

MikeDirnt78

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Why not just name the FX provider?

Maybe someone can advise further.
 

tsipacse

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Is this due to the tightening of fx trading margin requirements to 20:1, as prescribed by MAS?
 

strangerjun

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Why not just name the FX provider?

Maybe someone can advise further.

at this point, I don't want to reveal their identity yet. Hoping the dispute can be settled satisfactorily.
 
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DukeCS33

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Was trading with one of the brokers and these happened:

-My open positions which were at an overall loss were forced closed due to technical error on their platform not due to insufficient margin whatsoever
- The loss was realized, initially, the losses came up to be 6 figures erroneously :eek:
- There was no communication from them when such outage occurred leaving me distressed (seeing 6 figures losses and entire account wiped out)
- During the outage, I couldn't trade at all and the market would have moved during the disruption
- After that, positions were reopened and I was puzzled on new positions opened. Before that, there was a complete blank on the platform because my positions were liquidated. I was confused and did not know what to do (should I trade normally or wait for further advice from the broker?)
- The broker later clarified that due to a technical error, they eventually rectified the mistakes and reopened the positions at the same price at the point when they were closed. Losses were adjusted to the actual amount



The broker told me it is materially the same had the positions were to left open versus it was liquidated.

Please advise the recourse.

:(

I would think that the opening docs you signed would have covered platform outage problems and you would have little recourse

Were you intending to close your positions during that outage period and therefore missed a profit opportunity?

Just change provider - no reason to continue to give them business. Sueing would result in more grief and legal cost without a guarantee of results.
 

strangerjun

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I would think that the opening docs you signed would have covered platform outage problems and you would have little recourse

Were you intending to close your positions during that outage period and therefore missed a profit opportunity?

Just change provider - no reason to continue to give them business. Sueing would result in more grief and legal cost without a guarantee of results.

I intend to leave them open. But they liquidated the positions and losses were realized. Broker say it is the same. Eg. Buy stock at $1 and market price is 50 cents, I lose 50 cents paper loss versus they close my $1 position, realizing the loss and reopen a new buy position at 50 cents.

I intend to go to fidrec to raise a dispute
 

MikeDirnt78

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I intend to leave them open. But they liquidated the positions and losses were realized. Broker say it is the same. Eg. Buy stock at $1 and market price is 50 cents, I lose 50 cents paper loss versus they close my $1 position, realizing the loss and reopen a new buy position at 50 cents.

I intend to go to fidrec to raise a dispute

What are you going to dispute for if you don't suffer any loss?

Just liquidate your position and move your capital elsewhere.
 

MikeDirnt78

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I assume the market value of your portfolio is the same before and after the error.

In other words, the error had no impact.
 

havetheveryfun

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I assume the market value of your portfolio is the same before and after the error.

In other words, the error had no impact.

no impact on value, but have impact on the trader psychologically ..

cos instead of unrealized loss, the positions now may show as a profit instead... thats what he is complaining about
 

Hot_Dog

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Actually I encountered something similar, only one time, got my position report before the inccident, was trading a jpy pair, emailed and showed them that my account did not exceed the margin requirements.

Got a reply on the same day, issue resolved, all positions reverted back. Some times **** happens, but you need to know what you are doing, no half assing it :s13:
 

strangerjun

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Actually I encountered something similar, only one time, got my position report before the inccident, was trading a jpy pair, emailed and showed them that my account did not exceed the margin requirements.

Got a reply on the same day, issue resolved, all positions reverted back. Some times **** happens, but you need to know what you are doing, no half assing it :s13:

They "reinstated" the position back but at the price when it was closed due to technical fault.

Did they reopen at your opening price or the above?
 

Hot_Dog

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They "reinstated" the position back but at the price when it was closed due to technical fault.

Did they reopen at your opening price or the above?

Not sure what you meant, but my positions were restored at the levels that I've entered. Technically I got a margin call, account locked, when I was no where near that. :s13:
 

strangerjun

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Not sure what you meant, but my positions were restored at the levels that I've entered. Technically I got a margin call, account locked, when I was no where near that. :s13:

They restored my positions at the price where they closed. eg. I buy at 1 dollar, they closed at 95 cents which were the market price at the time. Then reopened the position at 95 cents. I realized the loss of 5 cents.

:vijayadmin:
 

Hot_Dog

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They restored my positions at the price where they closed. eg. I buy at 1 dollar, they closed at 95 cents which were the market price at the time. Then reopened the position at 95 cents. I realized the loss of 5 cents.

:vijayadmin:

That doesn't make sense, email them your prior positions report. But if you are long, and they restored you back at 95 cents, its your gain man, something doesn't sounds right here.
*Oh you meant they close you out at 95, then reopened at 95? You need to email your broker asap. Any reasons given by your broker as to why they did that? Do you have proof of your previous position?
 
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strangerjun

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That doesn't make sense, email them your prior positions report. But if you are long, and they restored you back at 95 cents, its your gain man, something doesn't sounds right here.
*Oh you meant they close you out at 95, then reopened at 95? You need to email your broker asap. Any reasons given by your broker as to why they did that? Do you have proof of your previous position?

No gain.

Entered long at 1 dollar
They closes at 95 cents
Realize loss of 5 cents
Then reopen my position at 95 cents

They said due to error and all these opening and closing were done without any communication. Market don't know move up and down how many times during the disruption.
 

strangerjun

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Not to mention there were other glitches too. Cannot open new positions and cannot close existing positions. Tell me to contact them if I want to do so. Then the trading platform is for what?

:(
 
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