Broker auto closing trades every end of the week

Hi all,
I would like to ask you about your experience about the following issue.

Broker (or owner of the platform I use) decided that, based on some regulation in interbank and EU, they will close every open trade friday evening regardless if the trade is making profit or loss. They will reopen the trade on sunday evening when markets open. They will open trade at the same value as when it was closed but my balance will be charger. The problem is that they will charge my balance with loss or profit from the trade.

In practice this looks like this.

I have account with 5.000 € on balance. I open a trade on monday and it goes negative. On friday evening I have -350€ on the trade and my broker closes the trade and my balance then is 5000 - 350 = 4650 €.

Does any platform anybody else uses do anything like this?

I was lucky not to trade last week but a friend of mine lost 900+€ because of this...

...the scam brokers are getting better and better

take your money and run as fast as you can!

Name and location of this fraudster??

This is common practice in futures trading - every day at the session end open positions get marked to market (P&L settles in account) and at the start of the next session the position gets reopened at the opening price. I have not heard of this being used in spot FX trading tho (but i know some platforms who impose higher margin requirements overnight and over weekends). But you shouldn't loose any money because of this (at least its not the case in futures - its just a bookkeeping/clearing practice). It doesn't really matter when you realize your loss - should the trade come back later you will realize the profits too (you may loose 1 time the spread each day tho). Floating losses are just as bad as realized losses - what counts is the account equity, this this should be the same either way.

Depending on the prices they were opened, closed and reopened, it could either be a) a scam, or b) just right.

To be fair, it is only reasonable to show an actual trade.

What price it was opened; what price it was closed on friday, and what price it was re-opened on Sunday.

Though based on what you explained, if position will be reopened at exactly same price it was closed in friday, then I dont see anything wrong with it. ie, if price was closed at 1.8215 and reopened at 1.8215, then it is exactly same!

Some brokers also have a policy of requiring higher margin over the weekend. ie, you may have 1% leverage during weekdays, but this would jump up to 5% during weekends.. I find this very fishy practice because all this does is cause you to loose money on spreads as you will be forced to close and open again and doubly costly if broker charges commissions as well!

Casinos employ a variety of tactic to distract gamblers. If you are winning, a slight psychological stimulation could easily tip the balance in their favor. Ever wonder why the house would change dealer when player is winning? sometimes, they would send in scantly dressed seductive refreshment girls offering you a drink or perhaps just to arouse you.

Trading (and gambling) is psychological. If its affecting you mentally, then something it is doing you bad.

Yes, based on the info I got the trade is reopened when markets open at the same value as when it was closed.

But I have the following problems with this:
- I rather see -500 in open trades than have -500 in balance
- trading on friday is something I would not do now (I'm not scalping)
- I know of no other platform that would do this
- before I could have open trade for a month and could follow it, but now after friday I have to have written down when I opened it in a first place...

Well... today I'll learn more as the company will have a webinar on this subject.

To me this is just another way for them to fill their pockets with money...

We'll, this is the case now.

What they do now is that every Friday when the markets close they close ALL your trades. If you had negative trades they take money from your balance and if you had positive trades they give that money to your balance. On Sunday evening they reopen the trades at the same value that the trades were closed. Your exit points remain the same.

And the funny thing is they call this swap and they say many companies are doing this. But this has nothing to do with swap as swap has to do with interest rates on open trades based on long, short & interest info.

They claim nobody is losing any money with their closing of traders trades as they only "align" equity and balance and if you have -300$ trade that you don't have that money anyway so they can do what they do.

They even mentioned that SaxoBank does the same... I guess they maybe don't even know what SaxoBank does or even don't know what swap is...

It's called 'rollover', lots of marketmakers do it every night, it's nothing new and it's not a scam!

Why does it make any difference to you anyway, do you think your losses aren't real while they're unrealized?

What? How did he lose because of it?

I doubt I'll get a reply......