samer1112
Private
- Messages
- 20
i sent to him
samer1112
Private
- Messages
- 20
FBS Official Rep
FBS Representative
- Messages
- 193
Hello, thank you for inviting me to join in this issue. Please allow me to check into the details of this case, and I will return with more information.
FBS Official
FBS Official
samer1112
Private
- Messages
- 20
exactly , there were no such prices in that moment of early opening
FBS Official Rep
FBS Representative
- Messages
- 193
We appreciate you coming to FPA and would like to again explain the situation.
We would like to draw your attention to the fact that this situation took place two years ago. FBS is developing all the time. FBS company has been operating since 2009 and we are constantly improving our trading conditions and take into consideration our clients’ wishes.
FBS has created the Customer Agreement so it covers most of the possible situations, so that our clients know what to expect in any given situation. Thus, all traders may work out their trading strategy. Please, kindly be reminded, that by registering an account with FBS company the Client further represents that he/she has complete understanding and is agreeing with all terms and conditions of Customer Agreement (p.1.2.2.), and since, according to the Customer Agreement, in order to minimize Client's risks at the time of market opening on Monday, <...> the Company reserves the right to lower the leverage and change margin requirements severalfold (p.3.7.4.), our clients are already informed that the leverage may be changed before Market opening, especially in the event the conditions come, different from the regular ones.
On July 5th, 2015 there has been a referendum in Greece. This news piece had great influence on the Market. Therefore most of the reliable brokers have lowered the leverage, since the bigger leverage is, the more risks a trader is likely to encounter.
Considering the time of leverage decrease different brokers prefer different methods. Some of the brokers lower the leverage several hours before Market closure, but this method is quite risky for those clients, who want to close their orders right before Market closure, because they wait for the suitable price, since abrupt leverage decrease can cause unexpected Stop Outs. The other method is lowering the leverage before Market opening. This way, those clients, who want to close orders before Market closure can do it without any difficulties, and those clients, who want to leave their orders for a weekend may foresee the leverage decrease and calculate the needed order volume and margin or even deposit on their account in order to avoid orders closure. FBS company always tries to look into clients’ needs, so in this abnormal situation the second variant has been considered as the most preferable.
In this case, if a client has calculated the volume and margin beforehand, the leverage decrease will not bring any damage to the client’s balance and this client will be able to close his/her order any time he prefers. In case the leverage decrease impacts the margin, during a so-called Pre-Market session the order may be closed by real Market Closure price (by Stop Out), if right after the trading session closure there is no enough margin to keep the order open. In most cases this allows to prevent account from going negative. Yet, please, kindly be informed that this an exceptional situation, triggered by unstable Market situation.
Please, kindly be noted, that Pre-Market means that the orders are executed before official Market opening (exactly one hour before Market opening). Next, we would like to clarify, that Pre-Market is used not only for clients’ advantage and trading, but also for clearing operations execution, which is needed for adequate work of any big broker company. By clearing means that we make review calculation of the margin and deposit. Positive margin — is added to the deposit, negative one is deducted.
And at last we would like to emphasize that the time of leverage change do not influence the trading result in this case, since even if the leverage was changed right before Market closure, the order would still have been closed automatically by Stop Out. as at the moment of order closure the margin was 1670.6, 333.0 – remaining funds at the time of order closure, 19.9% is the margin level at the time of order closure. As you remember, the Company is entitled to mandatory closing of a Client’s open position without prior notification of the latter one, if Margin level is lower than 20% of the necessary margin for maintaining open positions.
We hope that this official statement has managed to clear up all the misunderstandings.
We would like to draw your attention to the fact that this situation took place two years ago. FBS is developing all the time. FBS company has been operating since 2009 and we are constantly improving our trading conditions and take into consideration our clients’ wishes.
FBS has created the Customer Agreement so it covers most of the possible situations, so that our clients know what to expect in any given situation. Thus, all traders may work out their trading strategy. Please, kindly be reminded, that by registering an account with FBS company the Client further represents that he/she has complete understanding and is agreeing with all terms and conditions of Customer Agreement (p.1.2.2.), and since, according to the Customer Agreement, in order to minimize Client's risks at the time of market opening on Monday, <...> the Company reserves the right to lower the leverage and change margin requirements severalfold (p.3.7.4.), our clients are already informed that the leverage may be changed before Market opening, especially in the event the conditions come, different from the regular ones.
On July 5th, 2015 there has been a referendum in Greece. This news piece had great influence on the Market. Therefore most of the reliable brokers have lowered the leverage, since the bigger leverage is, the more risks a trader is likely to encounter.
Considering the time of leverage decrease different brokers prefer different methods. Some of the brokers lower the leverage several hours before Market closure, but this method is quite risky for those clients, who want to close their orders right before Market closure, because they wait for the suitable price, since abrupt leverage decrease can cause unexpected Stop Outs. The other method is lowering the leverage before Market opening. This way, those clients, who want to close orders before Market closure can do it without any difficulties, and those clients, who want to leave their orders for a weekend may foresee the leverage decrease and calculate the needed order volume and margin or even deposit on their account in order to avoid orders closure. FBS company always tries to look into clients’ needs, so in this abnormal situation the second variant has been considered as the most preferable.
In this case, if a client has calculated the volume and margin beforehand, the leverage decrease will not bring any damage to the client’s balance and this client will be able to close his/her order any time he prefers. In case the leverage decrease impacts the margin, during a so-called Pre-Market session the order may be closed by real Market Closure price (by Stop Out), if right after the trading session closure there is no enough margin to keep the order open. In most cases this allows to prevent account from going negative. Yet, please, kindly be informed that this an exceptional situation, triggered by unstable Market situation.
Please, kindly be noted, that Pre-Market means that the orders are executed before official Market opening (exactly one hour before Market opening). Next, we would like to clarify, that Pre-Market is used not only for clients’ advantage and trading, but also for clearing operations execution, which is needed for adequate work of any big broker company. By clearing means that we make review calculation of the margin and deposit. Positive margin — is added to the deposit, negative one is deducted.
And at last we would like to emphasize that the time of leverage change do not influence the trading result in this case, since even if the leverage was changed right before Market closure, the order would still have been closed automatically by Stop Out. as at the moment of order closure the margin was 1670.6, 333.0 – remaining funds at the time of order closure, 19.9% is the margin level at the time of order closure. As you remember, the Company is entitled to mandatory closing of a Client’s open position without prior notification of the latter one, if Margin level is lower than 20% of the necessary margin for maintaining open positions.
We hope that this official statement has managed to clear up all the misunderstandings.
samer1112
Private
- Messages
- 20
There are two points :
1. FBS didn't announce that they will lower the leverage before the referendum in Greece.( neither on FBS.com site nor via emails to their customers .!
2. The real price when FBS closed my orders was 1.1006 on ( other big broker compaies like saxo bank..FXCM ..)
so what fbs did exactly ... they saw the real price opened GAP 165 on my side then they decided to close my order on Friday price at 1.1170 to prevent me gain the profits
i lose -495 usd instead of win 2000 usd by this behavior !
my question to all FPA experts and Traders : is it fair ?!
1. FBS didn't announce that they will lower the leverage before the referendum in Greece.( neither on FBS.com site nor via emails to their customers .!
2. The real price when FBS closed my orders was 1.1006 on ( other big broker compaies like saxo bank..FXCM ..)
so what fbs did exactly ... they saw the real price opened GAP 165 on my side then they decided to close my order on Friday price at 1.1170 to prevent me gain the profits
i lose -495 usd instead of win 2000 usd by this behavior !
my question to all FPA experts and Traders : is it fair ?!
FBS Official Rep
FBS Representative
- Messages
- 193
Dear Samer
We would like to bring to your notice the 4.5.4. paragraph of the Customer Agreement:
4.5.4. In case the following conditions are simultaneously met on the Client's account:
a) Margin level does not exceed leverage set on the account;
b) 60% or more of total position volume is placed at one trading tool and in the same direction (sell or buy);
c) This part of the total position has been formed within 24 hours period before the market closes;
The Company is entitled to set “Take Profit” for orders, included in the total position at the Ask price level of market closing for the tool minus one point (for sell orders) or at the bid price level of the market closing for the tool plus one point (for buy orders).
This means that in this particular case the Company had a right to set “Take Profit” at the Ask price level of market closing for the tool minus one point (since your order is sell type), regardless in which direction the order is set (sell or buy), i.e. no matter if the order is with profit or loss. Unfortunately, at this point exactly your order still would have reached Stop Out level. The other case scenario was exactly what happened with your order: during the Pre-Market session the leverage has been changed and due to this the order has reached Stop Out.
Please, kindly let us repeat once again, that the leverage has been changed as a result of the clearing operations execution. In this particular case it means the order was closed not by the current Pre-Market price, but by Market Closure price during the Pre-Market session.
ruseneca
Master Sergeant
- Messages
- 348
In my opinion, the optimal decision in such case would be setting the result from the deal to zero.
In addition to this, brokers must pay attention that leverage requirements must be changed several days before such major events and traders must be informed 1 week ( or more ) in advance!
I believe that the broker has acted incorrectly here! No matter what was the leverage at that moment, the deal had been in profit in that past moment when the market had been in a pre-market session, thus adding to account's margin. There were no reason to execute it in the session's friday closing price.
However, in case the broker proves that the trader had acted completely unreasonably by taking too much risk, I would definitely vote for the broker in case this turns into a public voting. There is no place for betting before such major events!
In addition to this, brokers must pay attention that leverage requirements must be changed several days before such major events and traders must be informed 1 week ( or more ) in advance!
I believe that the broker has acted incorrectly here! No matter what was the leverage at that moment, the deal had been in profit in that past moment when the market had been in a pre-market session, thus adding to account's margin. There were no reason to execute it in the session's friday closing price.
However, in case the broker proves that the trader had acted completely unreasonably by taking too much risk, I would definitely vote for the broker in case this turns into a public voting. There is no place for betting before such major events!
samer1112
Private
- Messages
- 20
may be If Fbs closed my order before Market closure i would not say any think because my order is closed at real price when market is still opened ... but you closed my order at Sunday evening when you knew that eurusd will open at GAP 165 on my side ..
That's the fact of your behavior
and Again :
FBS Official Rep haven't replied to my points :
1. Did FBS announce that they will lower the leverage before the referendum in Greece.?
( on FBS.com site or even via emails to their customers .? )
if yes ... you have to proof that
if no ... you are guilty
2. The real price when FBS closed my orders was 1.1006 on ( other big broker companies like saxo bank..FXCM ..)
so what fbs did exactly ... they saw the real price opened GAP 165 on my side then they decided to close my order on Friday price at 1.1170 to prevent me gain the profits
i lose - 495 usd instead of win 2000 usd by this behavior !
my question to all FPA experts and Traders : is it fair ?!
FBS decreased the leverage from 1:2000 to 1:50 !! without any prior notification ?!
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