Resolved - rollover blown my account is it true or scam?

alzahif

Corporal
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144
Hello everyone..respect for all
There is an event happen with me few days back I was open sell in crazy ie gbpjpy later when it loss I opened buy position both in same lot size..so normally my account will not blown at all but what happened is something make me suspect broker..so I need help from FPA to reassure me or what I have to do..specially I contact support of broker they explain the reason is rollover and widening spread that appear end of the day..is it true?reply from broker:
Dear Client,

Thank you for contacting us

Please note that hedged positions #255978761 and #256080727 were stopped out due to spread widening during rollover and the fact that the free margin level was lower than the 20%, which is the stop out level for Premium accounts.

Please note that the during the time period from 23:55 to 00:05 server time increased spreads and decreased liquidity can take place due to daily bank rollover. In case of inadequate liquidity/spreads during bank rollover, widened spreads and excessive slippage may occur.

It is important to note that even a fully hedged account may suffer losses due to rollover costs, exchange rate fluctuations or widening spreads. Such losses may even trigger a Margin Call/Stop out.

During a hedged position stop out, the bid price decreases and the ask price increases (spread widens), this is the inverse of the relationship between bid – ask during normal market conditions!

In a hedged position, your sell trades are closed by the ask line, and the buy trades are closed by the bid line. Normally, the loss of one position will be offset by the gain of another. However when the spread widens like this, both positions create losses and can cause a stop out as was the case with your account.

Your account was very close to stop out before the rollover and the spread widening during the rollover caused the equity to go below the required margin level resulting in the correct closure of the positions.

We remain at your disposal.
 
A lot of things come into play on this. If you were over-leveraged, then spread widening could have taken out your remaining equity and pushed you into margin call territory. On the other hand, some brokers have been rumored to manipulate spread in a case like this.

My suggestion - crunch the numbers and see how many pips you were away from the cutoff for a margin call. Check with the broker to see how wide their spreads were. Then check with a few similar brokers to see if that spread widening was massively above the competition or not.

If the numbers don't add up, ask the broker to show their calculations. Compare theirs to yours and see if you can spot the error. I've seen brokers make errors and I've seen traders make errors, so do the comparisons slowly and don't bias yourself about where the error may be.

Post an update when you've got more info.
 
Thanks for sharing, yesterday broker call me as I'm not convinced with their justification justification,they offer me to reopen the 2 positions as before and I agree
You can also see attached picture spreads was almost 15 pips
Thanks
 

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If they made an error, then they should cover the expense of reopening the positions. Be careful - there are some brokers which will offer to reopen closed positions - if you send them more money first.
 
If they made an error, then they should cover the expense of reopening the positions. Be careful - there are some brokers which will offer to reopen closed positions - if you send them more money first.
They didn't ask money for that they just want me comfort dealing with them, now the question is can I trust broker more after this incidence and consider what happened normal,or suspicious?
 
They didn't ask money for that they just want me comfort dealing with them, now the question is can I trust broker more after this incidence and consider what happened normal,or suspicious?
Two things that you can give a thought to. First, they did not ask for extra money to reopen the closed positions (You may give them a benefit of doubts). Second, you can simply avoid them and go with another broker :)

It's totally up to you that they earned your trust by reopening the closed positions or not .
 
In general, it's good to keep an eye on any broker. Even with a great broker, mistakes can and will happen, but these are often not detected by the broker if you don't complain. It may be a good idea to test and see how the withdrawal system works.

It sounds like this issue is resolved. If something new happens, get a new thread opened and name the broker.
 
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