RESOLVED Case# 2013-040 | jareer vs www.liteforex.com

[jareer]

Jareer i Support u

Thank you m&z

 

[HDHORDA4]

Well this rule about the agreement 6.8 states this :-

6.8. In case the price change is related to the difference between the last instrument price before the market closing and the first instrument price at the opening of the market, or is connected with
the news release, and increases profits by more than 10% of the Equity, the Company reserves the
right to adjust financial result of such transactions to an amount proportional to the difference in the
prices indicated above by means of funds deduction with a following comment. In some cases, the
Company can set limits of less than 10% of total deposit to the minimum profit change.

So this means (according to their terms) that they can "correct" profits of traders only if they see that they are trading news OR price gaps so i just saw the defination of price gaps in their terms of use
and i saw two types of price gaps mentioned in their temrs of use:-

1)Price gap – either of two situations: Bid of the current quote is higher than Ask of the previous
quote; Ask of the current quote is less than Bid of the previous quote.

2)Price gap at the market opening - either of two situations: Bid of the opening market quote is
higher than Ask of the closing market quote; Ask of the opening market quote is less than Bid of the
closing market quote.

SO which type of price gaps are applied to 6.8 agreement?

i think in this case they may have applied this to the second one.

also the first type of price gap is a little tricky to me as they say Price gap – either of two situations: Bid of the current quote is higher than Ask of the previous
quote; Ask of the current quote is less than Bid of the previous quote.

 

[reb3rd]

@jareer - I might be reading it wrong (I am not a Rocket Scientist nor am I a Lawyer!) but the "Clause 6.8" seems to only apply when price moves - (1) "In case the price change is related to the difference between the last instrument price before the market closing and the first instrument price at the opening of the market" and (2) "or is connected with the news release". Then for either one of them it says - "and increases profits by more than 10% of the Equity".

jareer, if I am correct in reading it, my question would be - Were you trading during one of those time periods?

 

[Pharaoh]

That clause is patently unfairly written. They can grab everything ABOVE 10%, or even LESS THAN 10% at will. It's a direct license to steal money from traders.

I am told that it's being rewritten into an improved format. The question is whether or not LiteForex can settle this issue with Jareer and one other person who got nailed by it.

 

[HDHORDA4]

That clause is patently unfairly written. They can grab everything ABOVE 10%, or even LESS THAN 10% at will. It's a direct license to steal money from traders.

I am told that it's being rewritten into an improved format. The question is whether or not LiteForex can settle this issue with Jareer and one other person who got nailed by it.

Yeah i agree with that this rule somehow gives them the license to correct traders profit to 10% or less then 10% of the equity regardless if it was made by price gaps or news trading OR in anyway.
Another question arises that how to know that this trades are actually qualified for this rule or not,who decides this and what are the evidences to decide that?(6.8 about price gaps or newstrading)
The question also is not only about jareer's case but for all the liteforex clients who have made a profit of over 10% in a single trade and are a victim of this weird rule which should be removed completely in my opinion.

 

[HDHORDA4]

1. What is the standard timing for scalping?
2. Does liteforex allow scalping? because i presume a 2 min trade would be a very quick one.
3. The trade history records would show time of entry and exit. I think this would help.

These inquiries would help the case and decisions.

Well the standard time of scalping in my opinion would differ for every trader and brokers.

As for liteforex their rule is that you can trade in any style but the trade must last atleast "2 minutes or more"
otherwise they may cancel your trades specially if they see that majority of your trades are lasting less then 2 minutes.

 

[jareer]

Hi all

IWant to inform you that liteforex gave me 50% OF MY money and told me that they will change the terms of agreement 6.8 soon therfore I accepted this offer .

Thank you fpa members for supporting me , together we are army I will never forget this thank you .

 

[HDHORDA4]

Hi all

IWant to inform you that liteforex gave me 50% OF MY money and told me that they will change the terms of agreement 6.8 soon therfore I accepted this offer .

Thank you fpa members for supporting me , together we are army I will never forget this thank you .

Well that's great to hear that you got atleast 50% of your money and NOW lets see what amendments liteforex will make in this rule i hope it will be completely removed!

 

[qbitz1]

Fantastic! Well done FPA I don't know whether this outcome was directly related to the guilty verdict, but it's nice to see that this court system bearing some fruit and not just as a warning to members about companies to avoid. Makes me encouraged to vote more often

 

[Pharaoh]

Excellent news! It's good to see something like this work out.