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saxo bank scam on hedging

Discussion in 'Scam Alerts' started by staxx123, Jan 15, 2012.

  1. staxx123

    staxx123 Recruit

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    i oppened a long possition at 1.3656 for euro100.000 AT 14/11/2011. I maintained that possition and kept funding my account because of the UNREALISED loss i was making, and at 30/12/2011, THAT IS 46 DAYS AFTER I BOUGHT, i decided to hegde, by oppening a sell possition of same amount. The next working day i found out that they have closed my possition with realised loss of euro5743,. At the time of the closing of the transaction i had in my account another euro5000,.

    When i asked them why they closed my two possitions the answer was that their system closed the possitions by default and i ought to know their general business terms that say that if you open two opposite possitions then saxo bank will close the possitions UNLESS YOU associate one of the two possitions with another order like take profit or stop loss in order for their SYSTEM not to associate the 2 possitions. I wonder if i had read their terms was it possible for me to remember that?

    FURTHERMORE, WHAT IS THIS? THIS IS WHAT HEDGING MEANS!!!! AM ASKING EVERYBODY. HEDGING IS TO OPEN A SELL AND A BUY POSSITION WITH SAME AMOUNT BUT YOU HAVE TO DO ONE MORE CLICK AND THAT IS TO ASSOCIATE ONE OF THE 2 POSSITIONS WITH A STOP LOSS OR TAKE PROFIT? THE ANSWER IS YOURS AND ALL OF YOU THAT TRADE EVERY DAY AND DO HEDGING. By the way in order to close an open possition you click specific closing box. SO MY INTENTIONS WERE CLEARED FOR ME. I WANTED TO HEDGE.
     
  2. stevesmain

    stevesmain Sergeant

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    Saxo has had for a long time the action you speak of.

    If you open in one direction and then open (time is not relevant) in the opposite direction. The one will cancel the other. This is not uncommon.

    Some allow hedging without other steps, yet others do not.

    This oco can work well for scalping. They have an instrument board that one can use without opening a trade box all the time, though it does not allow one to set stops, limits etc.
     
  3. Pharaoh

    Pharaoh Colonel

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    Most retail brokers outside the US that use MT4 allow hedging. Not all do. Many other trading platforms prevent hedging and just close your trade if you make an opposite trade. That's the nature of the beast and is another reason to ALWAYS read the TOS and test out a demo account before placing any money on the table.
     

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