Thank you for contacting us regarding this matter.
My name is Erica and I am a senior Customer Operations staff member. I would like to assist you with this matter.
Firstly, we would like to reiterate that for the purposes of identifying, reporting, and monitoring Scalping in a uniform manner, Plus500CY Ltd applies the following definition of Scalping, which is included in the ‘Definitions’ section of our Client User Agreement:
“means a trading strategy based on the notion that Client transactions are opened and closed within two (2) minutes limit in order to accumulate quick profits from small price changes.”
Therefore, Scalping is determined to have taken place when we notice that a number of a Client’s total positions at the time of monitoring had been opened and closed within two (2) minutes.
Under Section 25.1.4 of the Client User Agreement, "you agreed not to enter into any Transaction which falls within the definition of Scalping or automated data entry system". Section 25.1.4 also provides that Client transactions with short duration and with a win/loss ratio significantly in your favor may be deemed as abusive trading and will not be allowed; in such circumstances we reserve the right to void/cancel part/all your abusive trading transactions, close all and any of your Trading Accounts and terminate the User Agreement under Section 22.5 or Section 22.8.
Furthermore, under Section 28.7 of the Client User Agreement, you agreed that “You shall hold us harmless in respect of all liabilities which we suffer or incur as a direct or indirect result of a breach by you or your obligations under the User Agreement…”.
Therefore, Scalping is clearly defined in Company's User Agreement, and in order to enter into a business relationship with Plus500CY you have confirmed to fully accept the Terms and Conditions clearly stated in our User Agreement. In case you did not consider any of the Terms and Conditions of our service to be suitable for your trading activity you should not provide your agreement to these Terms. Kindly note that there is no possibility to trade on our platform without confirming your agreement to our terms of service.
As you have been already informed, it has been determined by the review of your file and trading records that your trading activity/strategy is classified as “Scalping”.
As a result of your breaching Clause 25, we exercise our right to be indemnified under Clause 28.7 and we will cancel your abusive trading transactions which are considered to have been achieved through Scalping or an automated data entry system.
You have 7 days to close your open positions afterward we will cancel your abusive trading transactions.
You are hereby warned that in the event you will continue to enter into Transactions that fall within the definition of Scalping or automated data entry system, we are entitled under Clause 22.8 to take steps to close or suspend your account with immediate effect.
We hope we have been able to provide you with sufficient information and clarifications in order to resolve the matter.
Information on how to complain
Notwithstanding the above, if you wish to submit a formal complaint to Plus500CY please complete a Complaint Form, which is accessible to clients and potential clients online on the Plus500 platform at all times. To view or download the Complaint Form and the Client Complaint Policy log into your Plus500 account and click on Menu > Help > Terms & Agreements.
Please note that only duly completed and submitted Complaint Forms accompanied by adequate supporting evidence (as necessary) will be recorded as Complaints by the Company and will be handled as such.
If you have any questions or concerns about the process that needs to be followed in order to submit an official Complaint, please let us know, by replying directly to this email.
Regards,
Erica
Customer Operations
Plus500CY Ltd
169-171 Arch. Makarios III Avenue
3027 Limassol, Cyprus