Problem Plus500 - Oil Options, the biggest mistake ever.

[jacobdalegrieh]

Afternoon all,

Now let’s begin with this short story.

I’m not trading much and Oil is looking like a straddle so I have regretfully for the first time ever opened a Put and call at the strike rate of 12.5 with Plus500. I was short of having 50 call options to match my 200 Put options, but that doesn’t really matter.
With this being a straddle I was not expecting to be in a loss other than for the fees inbetween and providing the price of Oil drastically changes I should be in profit, which is exactly what happened other than the latter laughably.
So long story short when I put my options in oil was approximately $12.9 and the price had quickly dropped to $12.18 - This should be looking great for my Put at 12.5 now. The buy price is at 6.8 at one point but I can only sell my options at 3.5? Before being stopped out on margin call slightly lower than this?! How does that make any sense. I understand floating/dynamic spreads but when it’s gone from 0.15 to 3 whole points on the spread that’s crazy, I have essentially lost money for predicting the right direction?

I have emailed Plus500 about this, but I have come to you guys to see if I even have a leg to stand on (I feel like I certainly should)

Thanks for any advice in advance,
Jake

 

[FxMaster]

Afternoon all,

Now let’s begin with this short story.

I’m not trading much and Oil is looking like a straddle so I have regretfully for the first time ever opened a Put and call at the strike rate of 12.5 with Plus500. I was short of having 50 call options to match my 200 Put options, but that doesn’t really matter.
With this being a straddle I was not expecting to be in a loss other than for the fees inbetween and providing the price of Oil drastically changes I should be in profit, which is exactly what happened other than the latter laughably.
So long story short when I put my options in oil was approximately $12.9 and the price had quickly dropped to $12.18 - This should be looking great for my Put at 12.5 now. The buy price is at 6.8 at one point but I can only sell my options at 3.5? Before being stopped out on margin call slightly lower than this?! How does that make any sense. I understand floating/dynamic spreads but when it’s gone from 0.15 to 3 whole points on the spread that’s crazy, I have essentially lost money for predicting the right direction?

I have emailed Plus500 about this, but I have come to you guys to see if I even have a leg to stand on (I feel like I certainly should)

Thanks for any advice in advance,
Jake

First of all, invite the company by using the invite company option to your thread. And if you are unable to locate the option then this thread "Tutorial: How to Invite a company to your thread." will help you to find out.

Note: Invitation button will be enabled when your thread passes 96 hours.
Note 2: Make sure to follow the suggestions correctly, when you do it correctly you will get below message in your thread automatically.
Note 3: Make sure to share your account number (Only account number). Many time this help companies to find out you are genuine or not.

 

[FxMaster]

Next steps:

--> Can you login to the trading platform from your desktop and submit the full account history statement? Use this tutorial: https://www.forexpeacearmy.com/comm...ccount-trade-history-statements-part-1.63543/

Also, get all screenshots/video evidence of your account that you can (bandicam / thundersoft screen recorders).

This would possibly include any relevant live chat/email conversation. Or your broker account backoffice (cabinet/client account management panel).

--> If you have any credit cards on file with the alleged scammer (or any payment method that may be compromised), you may consider at least placing a temporary block on the card (or changing the payment pin/ID. This may prevent any further losses.

--> Have you written a review of the company? https://www.forexpeacearmy.com/forex-reviews/5374/www.plus500.com?per-page=50

--> familiarize yourself with FPA's Traders court rules: https://www.forexpeacearmy.com/community/threads/new-traders-court.58022/

--> Do NOT abandon this thread. Every week, check back to report any updates from the company and/or respond to any unanswered inquiries.

@4evermaat, Copying your message bro

 

[4evermaat]

did you buy or sell options? Why would you do either with an OTC product? (vs an exchange-traded product)?

Did you study the business model of the company before making the first deposit (how does the broker profit from their clients)?