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Conspiracy Theory - Hotforex Scammed me $14770.25 - Because I gave myself a margin call

Discussion in 'Forex Insanity' started by Ed_Forex, Jan 17, 2015.

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  1. Ed_Forex

    Ed_Forex Private, 1st Class

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    My hotforex account number 269022.

    I had 3 open trades before a day of all orders closed for Balance $ -21 084.45

    Daily Confirmation: Floating P/L -22901.50, Balance $ 82322.52, Equity: $59421.02, Margin Requirement: $ 44770.25, Available Margin: $14650.77.

    My account was subject to 100% credit bonus: Losses of account can not exceed the bonus amount that was $30000(from the Balance $ 82322.52

    When Available Margin becomes 0 all trades must be closed because the account can not go into negative available margin.

    Available Margin becomes zero when Equity becomes the Margin Requirement $ 44770.25, all trades must be closed at that point.

    When this happens Losses of account would had already exceeded Hotforex condition of losses must not exceed the bonus amount $30000,
    because Floating P/L 22901.50+14650.77= 37552.27 - 82322.52 = 44770.25

    When Equity becomes 44770.25(Margin Requirement) and trades closed. My Balance must be $44770.25, the bonus amount $30000 deducted from the Balance when withdrawal requested, my money $14770.25

    Hotforex execution department declined my request of the $14770.25 and said the account can go into negative available margin.
    A thing that counts a precedent in the history of trading. Hotforex neglected margin % and everything related to trading.

    Hotforex assured me many times at past that I can not loose more than the bonus amount $30000 and its found in its conditions.
    I was trading all the time depending on this concept. Hotforex deceived me into believing this to steal my money.

    Hotforex terminated both the $30000 that my account must not loose and the available margin that must not become less than 0.

    I ask ForexPeaceArmy to please help me get my money back $14770.25 from Hotforex.
     
  2. Master Yoda

    Master Yoda Captain

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    What do you mean by that? that you can't lose anything from the deposit?

    If so, do you have any written email or something to support that?

    Anyway, invite them to reply to this thread.
     
  3. Ed_Forex

    Ed_Forex Private, 1st Class

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    Thank you for the reply.

    Not from the deposit, from the bonus, under the 100% bonus that was $30000 amount in my case and max. bonus that hotforex gives, if client deposits $100000 gets same $30000 as another who deposited $30000, if client deposited $10000 will get $10000 and so on.

    The client can not loose more than the bonus amount, when Floating P/L becomes -30000, all open trades will be closed. Hotforex had not done that.

    Hotforex did not apply its margin terms and conditions:

    If account equity falls below margin requirements, the HotForex Trading Station will trigger an order to close all open positions. When positions have been over-leveraged or trading losses are incurred to the point that insufficient equity exists to maintain current open positions, a margin call will result, and open positions must be liquidated.
    Please keep in mind that when the account's useable margin reaches zero, all open positions are triggered to close. The margin-call process is entirely electronic, and there is no discretion on HotForex's part as to the order in which trades are closed. Such discretion would require HotForex to actively monitor positions and accounts.
     
  4. comingbacksoon

    comingbacksoon Recruit

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    hello mate and i feel how bad to lose with out any alarm or warn, but let me get this clear, you never read the condtion? of 100% and 30% and even the supercharge? its all clear ITS never close to lose or with drawl unless the 100% after an caluclation of trade( which i never got 10% of) :) may i ask whats wrong with all the bounse ! i stil didnt get the wrong or the point of it? i mean what they have done wrong?
     
  5. Master Yoda

    Master Yoda Captain

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    That is a very not healthy system. If they guarantee such a thing, this should be a warning signal. Personally, I would recommend to avoid such a broker.

    If this is part of their conditions I suggests you to screenshot that before they play with it and change it, and then post it here.

    Do not forget to invite them to reply here.
     
    1 person likes this.
  6. Ed_Forex

    Ed_Forex Private, 1st Class

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    Thanks for replying.

    Please read again Hotforex terms and conditions about margin:

    if account equity falls below margin requirements, the HotForex Trading Station will trigger an order to close all open positions.

    My daily confirmation: Floating P/L -22901.50, Balance $ 82322.52, Equity: $59421.02, Margin Requirement: $ 44770.25, Available Margin: $14650.77.

    In my case, when my account Equity: $59421.02 fall below my account Margin Requirement: $ 44770.25, hotforex must had closed all open positions.

    When equity = $ 44770.25 and orders closed, my Balance must had been the Equity $ 44770.25, there's the $30000 bonus within it, My Actual Balance= $14770.25 that I requested from hotforex.

    There's another angle of opinion too, depending on the $30000 bonus amount can not be lost as hotforex says, when my equity = margin requirement= $ 44770.25, I actually lost the $30000 bonus amount(-7552.27 more loss) because my floating P/L = -37552.27 at time all open positions closed(account equity fell below margin requirements).
     
  7. NanaR

    NanaR Corporal

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    Hey, yours is the 100% credit bonus, not the rebate bonus correct? If you read the T&C carefully, the bonus should not be considered as part of your equity but as extra leverage instead even if they do show it as extra credit into your account. So, as long your balance in Hot falls below original deposit level (first time amount u put in), your bonus will be removed.

    Eg, I deposit 1000, hot gives me 1000 to match. Although equity shows as 2k total, as long it goes below 1000 (original deposit amount), the bonus will be removed.

    Ok, lets assume in my example, I made some losses... amounting to -1200. The bonus of 1k will be removed, which means account closed in a loss since it will be 1000 (since bonus removed) minus 1200 loss.

    So yes, after intensive discussion with the account manager here, realise its safer to think of it as bonus leverage, and not really bonus equity which can be relied on to "tank" the account. Hope you got it. And yes it sucks - I too will check with Live Help or account manager again before making first withdrawal.
     
  8. mohmadshkh

    mohmadshkh Recruit

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    let me add i am the winner of demo contest in hotforex and they just sent me email telling me i am disquilfied becouse of my name and silly things,100% scammm acout nomber 717314 rank 3 for december, and i can sure 100% its pure scam and lie
     
  9. mohmadshkh

    mohmadshkh Recruit

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    my cousin also lost 7000 same way like you the 100% offer
     
  10. NanaR

    NanaR Corporal

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    Eh guys I posted something earlier. A reply on how the 100% bonus calculation works but it is not showing...?
     
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