Wow... This is a horse of multiple colors!
Was Kovacs deliberately and willfully taking advantage of a technical glitch to increase his gains? Was he the victim of "bait and switch" pricing by the LP? Was FxOpen complicit in allowing false quotes or just incompetent with their technology?
These are all good questions I think and likely never answered definitively by either party. After all, with all the posturing to date, who's ready to admit wrongdoing?
My concern here is the business policy that chooses to hide behind legal clauses to escape responsibility for their own inefficiencies, errors, or omissions. While this may be perfectly LEGAL, it is morally and ethically reprehensible.
So, consider that FxOpen, when you decide your next step. How many professional traders will stay on board when the next target of your nefarious actions might be any one of them.
If FxOpen can prove beyond a doubt that Mr. Kovacs willingly and purposefully exploited a technical glitch to extract unwarranted profits from the firm, then present the evidence here, now. If not, I say you have no ethical basis to uphold your precious TOS clause and should make Mr. Kovacs whole while pursuing recourse through your apparently much valued LP.
Because, on the face of it as presented here, by both sides,... while you may be legally entitled to your actions, your behavior is that of a bucket shop and a scam.
So, sue me too if you think you can...
Dear dbrawner,
1) We do not want to sue anyone. We just say that blackmailing a Company and threat with e-mails using FPA's name is illegal and beyond any ethical rules. Can't understand why some members support this.
2) I wrote before: "He made trades with a very small volume. He just noted that due to technical problems his orders were executed with better prices than he observed in the Depth of Market. After that he immediately raised trade volume hundreds times. It is a red flag that he realised that trading terminal got the problem and he used it in his trading". In a simple words Client saw a real price in FXO's terminal but his trades were executed with a different price (much better form the real price), and once he indicated this he increased his trading volume to get benefits from this situation. This is the only reason how he could gain xxx% in very short period of the time (minutes). All the logs were sent to FPA and to the Client. More to say, the Company decided to compensate losses happened (around $1800) on a good will (execution with the real prices).
I repeat once again, the Company using FACTS to solve this dispute such as:
a) Trading Logs
b) Business agreement
c) Common practice
d) Business ethics
non of these was broken from our side
The Client using:
a) His dissatisfaction
b) Ignoring trading logs
c) Blackmailing the Company
d) Threats
"So, consider that FxOpen, when you decide your next step. How many professional traders will stay on board when the next target of your nefarious actions might be any one of them."
FPA is a famous place for the traders and let them decide. For any average experienced and professional trader or developer it is clearly obvious that there is no illegal things happened. I agree that there was a technical problem happened from FXO's side, but all loses happened due to this mistake were compensated by the Company. I am sure that any pro trader using our services will understand our position.
We will be more then happy to discuss ECN's model in a separate thread, share with technical and business details with the traders, explain every single moment but in a separate thread. I believe that the lack of knowledge and understanding of basic rules of this business leads to many emotional posts made in this thread.