Dear Readers,
Following recent correspondence between Forex Peace Army (FPA) and Bforex regarding the subject matter, we would like to clarify the reasons for terminating the account of Mr. Inderjit Bhambra.
In the online retail foreign exchange world, brokers are extremely vulnerable to many types of client system exploitations. Such exploitations are of considerable risk and therefore treated accordingly. The fight against these system exploitations requires vigilant risk management policies and immediate action- taking due to the volatility of the market and the possible outcome of such exploitation.
The case of the subject matter certainly falls within the scope of system exploitation and therefore bares the consequence of account termination.
Following an investigation made by our fraud detection department, an indication of suspected system abuse was found.
Mr. Inderjit Bhambra’s trading behavior suggested that he was working in a certain pattern. The pattern suggested that most trades made by Mr. Inderjit Bhambra were consequent to a news release of a specific region and the following trade being open on the currency of that specific region.
For example:
On 19/01/2010 8:30:04 GMT, a trade was opened on GBP/USD following an announcement from the UK. On 22/01/2010 8:30:02 GMT, another trade was opened on GBP/USD following an announcement from the UK. On 26/01/2010 8:30:01 GMT, yet another trade was opened on GBP/USD following an announcement from the UK.
The same case is repeated for the AUD/USD pair on 23:30 GMT following an announcement made from Australia, USD/JPY pair on 00:30 GMT following an announcement from Japan and much more. Attached you can find a scan of Mr. Inderjit Bhambra trade report indicating the specific trades.
The conclusion of the investigation was that Mr. Inderjit Bhambra was using a latency in the system’s data feed so as to have an advantage over Bforex and to gain unlawful profit.
As you may understand, a deliberate attempt to gain profits resulting from system abuse is a risk Bforex is not willing to and shall not accept.
Section 8 and subsections 8.8 and 8.10 to the Bforex trading agreement state:
Section 8 -“Without prior notice to, or receipt of further authority from the Client, BForex shall have the right to close out all or any part of any position or account of Client, upon or at any time after the occurrence of any of the following events:”
Subsection 8.8. - “BForex considers it necessary for its own protection;”
Subsection 8.10 - “Client who engages in what is deemed, illegitimate, unlawful, unethical system abuse, system arbitrage, or any other trade that may be deemed at one point or another as a violation of trading standards be it based on the amount of time the transaction was opened or by virtue of the fact that the trade was opened inadvertently at an incorrect price, time, or instrument.”
Based on the above, Bforex had no choice but to act in accordance with its trading policy and risk management policy to close Mr. Inderjit Bhambra’s trading account and refuse the unlawful profit made.
Nothing in the foregoing shall derogate from any claim and/or right and/or remedy to which Bforex is entitled under any law and/or agreement, and Bforex fully reserve all its rights.
We hope that this is clear to Mr. Inderjit and other traders who would seek to make profit unlawfully.