Dear Forex Trader 2016!
Please note that the transactions examined in the claim with the numbers #14164527, #14164522, #14164503, #14164488 opened with EURNZD instrument on August 10, 2016:
• were opened at the account 360496 at 23:56:12 (# 14164488), 23:57:11 (# 14164503), 23:58:21 (#14164522), 23:58:50 (# 14164527) - that is to say, were opened 4 minutes prior to and were formed into a position 1 minute 10 seconds prior to the publication of decision of New Zealand Reserve Bank regarding official cash rate and start of clearing (as set by the company from 00:00:00 to 00:05:00 according to the server's time);
• were closed by you in 5, 13, 22 and 41 seconds after quotations started to be received, which followed end of clearing;
• The volume of trades was 4 lots with the account balance as of 717.18 USD and equity as of 685.49 USD resulted in margin level as of 153% on the account, which enabled it to sustain a loss not exceeding 21 points before publication of the important news, accompanied by high volatility.
At the same business day, the transaction with a profit + 4'724.03 USD was canceled by the company based on the clause 4.12 of the "Regulations on handling trading transactions" (
https://freshforex.com/traders/documents):
"4.12 Company reserves the right to cancel or restore an order, change the opening (closing) price of an order, as well as change the financial result of an order, in the following cases:
• if Company does not have the possibility to maintain a position in the result of change of market terms, liquidity provider's terms, change in relationships with Contractors, as well as in the result of occurrence of force majeure events;
• if financial result of order does not correspond to the result of coverage of this order by liquidity provider;
• If Company has reason to believe that a Client trading strategy involves a risk of loss more than the value of the current account balance;
• If Company has a ground to believe that trading strategy of the Client may bring the risk loss of loss exceeding balance of the Client.
Client will be informed on any actions of the Company regarding cancellation, restoration or revision of order via internal mail."
Upon cancellation of transactions, we sent you a letter with notification to the e-mail address provided by you upon registration.
The documents regulating the company's actions - "Client Agreement" and "Regulations on handling trading transactions" – were accepted by you upon registration and opening of an account with the company at August 6, 2016 based on clauses 2.1 and 14.1 of "Client Agreement".
The grounds, on which the company introduced the clause 4.12 into "Regulations on handling trading transactions": Transactions made by the Client with the obvious risk of having a loss exceeding current account balance, can not be covered by the company with its liquidity providers, as it may lead to significant loss of the company on the side of the liquidity provider and such a loss is disproportionate to the funds on Cleints' accounts.
Thus, the company makes it clear in its regulatory documents that upon its inability to cover transactions with its liquidity providers, the company has the right to apply relevant sanctions provided by the "Client Agreement", including close, revision or cancellation of transactions on account of the Client.
Besides, we have run a careful examination of the claim, analyzed server logs and revealed accounts No 353652 and 359533 which are interdependent with the trading account No 360496.
These accounts were registered in the name of third parties, but authorization was made with use of the same device, let us refer to the trading server logs:
2016.08.08 12:31:47.690 101.222.253.198 '359533': login (954, android, dc: 0, cid: 7f9beda150a58aee208e0b630875c5f6, ping: 162 ms)
2016.08.08 15:03:59.817 101.222.254.38 '360496': login (954, android, dc: 0, cid: 7f9beda150a58aee208e0b630875c5f6, ping: 162 ms)
2016.08.10 23:19:13.935 117.206.113.20 '353652': login (988, client, dc: 0, cid: a3ec9b27e7ed5051c6703bdf9e78cceb, ping: 162 ms)
2016.08.11 18:46:47.217 59.92.104.15 '360496': login (988, client, dc: 0, cid: a3ec9b27e7ed5051c6703bdf9e78cceb, ping: 154 ms)
In addition, from 23:56:02 on the account No 353652 the positions with another instrument - New Zealand dollar (NZDUSD) – started to be opened. As a result, it has led to a risk of loss exceeding the account balance. When clearing was over, negative balance on this account was -7'596.20 USD.
Thus, the two interdependent accounts registered on behalf of different persons, the identical business strategy was applied creating a risk exceeding balance of the account.
In conclusion, let us note that you, Forex Trader 2016, continued to trade in our company without use of strategies associated with a high risk of loss exceeding equity of the account. As a result, you have increased your deposit and safely withdrew all funds including profit.
Please note that you withdrew your claim submitted to KROUFR on your own, so the official response to your claim is published here.