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PFG Best Direct Broker Strange Margin Calls

Discussion in 'Scam Alerts' started by greenpower, Jul 13, 2009.

  1. greenpower

    greenpower Recruit

    Joined:
    Sep 30, 2008
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    PFG Best Direct Account Start Balance ~ $2775.

    Two trades initiated by me this past April…

    Trade # 1
    Tues night 04/08/2009…
    Order # 906561
    Time: 2009.04.08 09:41
    Sell 1Lot EURGBP.usd Price: .8984

    Trade # 2
    Tues night 04/08/2009…
    Order # 906597
    Time: 2009.04.08 10.14
    Sell 1Lot EURGBP.usd Price: .89865

    Trade #1 Closed by PFG (Not Me):
    Time margin call closed trade #1: 2009.04.08 19:02 Price: .9052*
    Loss: -$999.60

    Highest price recorded shown on 1 min MT4 EURGBP chart was:
    “.9050” at 2009.04.08 19:02
    *On record price peaked at .9050 (?may be do to spread?).
    Price on EURGBP.usd within 1 second went continuously down (short) from there.
    If Broker did not close this trade it would have turned around immediately within ONE SECOND and headed toward profit.
    Instead it took -$999.60 from my account.

    *Price of EURGBP trickled up pip by pip over the course of an hour or longer, peaked out at .9052, the margin call closed my trade for the loss and then ‘within 1 second’ the EURGBP price then immediately turned down …dropped short (nosedived) in my favor. If this margin call was delayed by 1 second…everything would have been fine! The timing here is astronomically uncanny to be a coincidence for me as an onlookers point of view. I personally watched this demise of my $999.60 transpire all within a second!
    ////////////////
    Going into the 2nd night I was set-up for another loss with trade # 2 since my account was now down almost a thousand dollars…

    Wed night 04/09/2009:
    With $384USD equity still in account…
    Margin Call Trade # 2 Ordered Closed by Broker:
    Time: 2009.04.09 11:48 at Price: .9079

    Highest price recorded shown on 1 min MT4 EURGBP chart was:
    “.9087” at 2009.04.09 11:48
    This price was 8 pips above broker forced trade #2 closed price.
    Price on EURGBP.usd immediately (within 30 seconds) dropped (short) from there.
    There was enough money in account to more than cover the 8 pips deviation but do to the technicality of retaining a 30% margin the broker had the discretion to kill this trade even though there were still funds to cover the drawdown.
    Since my account was depleted almost one thousand dollars from the previous nights margin call the 30% equity law was broken.
    Again, if the broker did not close this trade it would have immediately (within half a minute) turned around and headed toward profit.
    Instead it lost another -$1355.77.
    Ending Balance ~$384USD.
    Total Account FL882 Loss (over past two nights) of -$2355.37

    Summary:
    I understand that these two trades were very risky and with hind-sight very stupid. I do not understand how this timing could happen like this. I do understand my responsibility to maintain the 30% margin according to the brokerage rules but the timing here for especially my trade # 1 breaking this rule and causing the liquidation call within 1 second of everything reversing is simple uncanny!

    I have no idea how a broker could do this but I sat there and watched the EURGBP price trickle up up up little by little, pip by pip by pip until the margin call killed the trade and then IMMEDIATELY the price reversed shooting down instantly afterword. It look perfectly orchestrated to close my trade and then reverse....something just was not right here!
     

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