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was i scammed?

Discussion in 'Scam Alerts' started by ryno, Dec 11, 2008.

  1. ryno

    ryno Recruit

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    I had been trading with a company for about 2 months and was down 13K usd. I made one last deposit of 2k and started to master my trading-style and got my account back up to 15K. A couple of times, I would open a trade just before close on Friday and it would ALWAYS close at my pre-determined stopping-point on the next Sunday-regardless...every time. Except for the time I got greedy and decided to sell 5 lots of a pairing just before close on Friday. When the market opened on Sunday, my trade never stopped-it went straight through my stopping-point of 30 pips and kept going until my entire margin had been used-resulting in a loss of almost 9K!! If it had stopped at my stopping-point, it would have been a loss of almost $1500-well short of the $8900 loss that occured.
    Every other time I made a trade Friday before close, the trade had stopped at my stopping-point on Sunday-win or lose, except for this time. The only difference was the other times I had traded a single unit and this time I traded 5 full units. I called and emailed the company and they said they are not responsible for this and would not credit my account. Was I wronged here, because I think I was but am not sure and I am looking for some help please!
     
  2. Pharaoh

    Pharaoh Colonel

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    Read your trading agreement VERY carefully. Most of them say that any gapping in price over a weekend can go against you. Of course, they might decided to honor stops on small trades where price gaps beyond a stop a few times. Maybe they are just being courteous, but maybe they are just letting you build up a false sense of confidence so that you'll trade more and get burned.
     
  3. cowmadagan

    cowmadagan Sergeant

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    No...you weren't scammed. We've all lost money before, so try to believe me when I say not to take this personally:
    You broke one of the cardinal rules of short-term and day time traders. Don't leave open positions on Friday night, even if you have a stop.
    I live in Asia, so I get to see the opening spikes on Monday morning (US Sunday night) and it's not worth the risk.
    If you didn't know, I say that you're short-term or day time because your stop was for 30 pips. Long term traders (like Warren Buffett) would put their stop at 200pips, but judging by your success, I'd recommend keeping your stops where they are, and close out before Friday's finished.
     
  4. ernest8fingers

    ernest8fingers Master Sergeant

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    Both of the previous posters are correct. Live and learn(hard I know). Just curious as to what Broker this is?
     
  5. fxfrench

    fxfrench FXOpen AU Representative

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    If I am reading this correctly, the market opened on a gap, but instead of you being slipped on the stop loss and being filled at the "next best" price (market open), the position remained open for some time until margin call occurred? Or was the gap price your margin call level and it happened immediately at the open?

    Reasonably, you should be filled at the opening (gap price) and just slipped if the open was past your stop loss. If that didn't happen your broker has some serious technical flaws they must overcome. Have a look in their agreement for conditions of "Gap" or "Next Best" price.

    Best of luck with it.
     

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