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Any broker allows this type of trading?

  • #1
  • First Post: Jan 19, 2013 12:30am Jan 19, 2013 12:30am
Hello, let's say I have 2 standard account under same name in a same broker:

Account A with 1000usd (1:500 leverage)

Account B with 1000usd (1:500 leverage)

On friday, from Account A I buy 1 lot EURUSD at 1.3000 without setting Stop Loss and Take Profit,

from Account B, I sell 1 lot EURUSD at 1.3000 without setting Stop Loss and Take Profit.

On next Monday, EURUSD open gap at 1.2800 (big news on saturday or sunday ). Account A stops out based on Stop Out procedure (10% Stop out level). Based on example above, it required 260usd to buy 1 lot EURUSD at 1.3000, should be left 26usd right?

From Account B, my account balance will be 3000usd (if i closed my sell order once market open gap on Monday, 2000usd is profit), any broker allows to withdraw this (1000usd initail deposit + 2000usd profit)?
  • #2
  • Jan 19, 2013 4:43am Jan 19, 2013 4:43am
So you are asking if they'd allow you to steal from them? Probably not.

The broker can't close out your losing trade til they market is open. The opening market price will be the price that trade is closed at, regardless of what stop out level you set. So while one account might see 2k in profits, the other will have a negative balance.

The broker would be out of pocket on the difference. Most likely they won't let you take out the profit on your other account until your negative balance is settled.
FXGears.com
  • #3
  • Jan 19, 2013 5:37am Jan 19, 2013 5:37am
.
At opening in monday the Broker will liquidate your euros purchase due to margin call.
You purchased 100 000 euros at 1.30 and owe the Broker 130 000 dollars.
In monday the broker will sell your 100 000 euros at 1.28 recovering 128 000 dollars.
with a loss of loss of 2000 dollars... your deposit is 1000, therefore you still owe the Brokers
1000 ( that is why brokers have a clause that could lose more then your investment)
Also the broker close your account immediately.

In your purchase of dollars, you purchased 130 000 dollars and owe the Broker
100 000 euros. At opening that account would be ok. And if you decide to sell the
dollars at opening price of 1.28 you will get 101 562.25 euros, you pay the 100 000 debt
and have 1562,5 euros , wich your broker convert at 1.28 to you account = 1999.68 dollars

wow... you broke even .. and now your broker thinks you do not know what you are doing
and probably will tell you to go and trade some where else. Probably freeze the good account too until
you settle everything.

J.
  • #4
  • Jan 19, 2013 5:45am Jan 19, 2013 5:45am
Quoting klhh
Hello, let's say I have 2 standard account under same name in a same broker:

Account A with 1000usd (1:500 leverage)

Account B with 1000usd (1:500 leverage)

On friday, from Account A I buy 1 lot EURUSD at 1.3000 without setting Stop Loss and Take Profit,

from Account B, I sell 1 lot EURUSD at 1.3000 without setting Stop Loss and Take Profit.

On next Monday, EURUSD open gap at 1.2800 (big news on saturday or sunday ). Account A stops out based on Stop Out procedure (10% Stop out level). Based on example above, it required 260usd to buy...

This has nothing to do with trading, it's cheating.
Forex is a losers game.
  • #5
  • Jan 19, 2013 6:25am Jan 19, 2013 6:25am
But this strategy is allowed in fxopen ecn


Quote
Dear Customer,
Please, be advised, the strategy you have described is prohibited on our Standard and Micro accounts. You will not be able to withdraw the profit which was made using this strategy. However, we don’t have any limitations on ECN accounts. You may try to use it on ECN accounts.
Please, refer to our Trading Terms: http://www.fxopen.com/TradingTerms.aspx
Best Regards,
FXOpen Teem
  • #6
  • Jan 19, 2013 6:34am Jan 19, 2013 6:34am
Quoting klhh
But this strategy is allowed in fxopen ecn
I highly doubt they'll let you withdrawal the profits when you have another account with a negative balance. You will still owe the difference. Especially with that broker since they've been known to act first in their own interest.

Again, who do you think covers the loss in the end if not you? Is the moral aspect of ripping off someone else not a problem for you?
FXGears.com
  • #7
  • Jan 19, 2013 6:46am Jan 19, 2013 6:46am
plus..... why start a thread when you already have your answer.

this reminds of some other hopeful, i'd have to check my ignore list to remember the exact name, who wanted to find some 'clever' way to withdraw broker new account bonus credits. people have the most whack ideas.

when you sit down at a game of poker and you can't identify who the sucker in the game is, it's you. brokers aren't suckers.
Congratulations ScalaFX for coming out of the closet!
  • #8
  • Jan 19, 2013 8:03am Jan 19, 2013 8:03am
Quoting klhh
Hello, let's say I have 2 standard account under same name in a same broker:

Account A with 1000usd (1:500 leverage)

Account B with 1000usd (1:500 leverage)

On friday, from Account A I buy 1 lot EURUSD at 1.3000 without setting Stop Loss and Take Profit,

from Account B, I sell 1 lot EURUSD at 1.3000 without setting Stop Loss and Take Profit.

On next Monday, EURUSD open gap at 1.2800 (big news on saturday or sunday ). Account A stops out based on Stop Out procedure (10% Stop out level). Based on example above, it required 260usd to...
very easy solution open Account with broker A and Account B open with broker Z. some big boys use this type of action but in diffrent way. they call many broker almost at same time and put large orders with complex math calcuation. but we can't do it simply.
just live a life, don't be hard.
  • #9
  • Jan 19, 2013 8:41am Jan 19, 2013 8:41am
.

Actually, ALL brokers (with hedging allowed) will allow this type of trading...
There is no reason for not allow... BUT, will play out as stated in post #3.
The Broker will go after you for the difference. If you have another account with
them or not.

J.
  • #10
  • Jan 19, 2013 8:43am Jan 19, 2013 8:43am
Quoting shaukat113
very easy solution open Account with broker A and Account B open with broker Z. some big boys use this type of action but in diffrent way. they call many broker almost at same time and put large orders with complex math calcuation. but we can't do it simply.

Non-sense, no one does it.

J.
  • #11
  • Jan 19, 2013 10:22am Jan 19, 2013 10:22am
This is not trading is it.
  • #12
  • Jan 19, 2013 10:40pm Jan 19, 2013 10:40pm
Quoting nubcake
plus..... why start a thread when you already have your answer.

this reminds of some other hopeful, i'd have to check my ignore list to remember the exact name, who wanted to find some 'clever' way to withdraw broker new account bonus credits. people have the most whack ideas.

when you sit down at a game of poker and you can't identify who the sucker in the game is, it's you. brokers aren't suckers.
After I have opened this thread, I only get my reply from Fxopen
  • #13
  • Jan 19, 2013 10:42pm Jan 19, 2013 10:42pm
Quoting shaukat113
very easy solution open Account with broker A and Account B open with broker Z. some big boys use this type of action but in diffrent way. they call many broker almost at same time and put large orders with complex math calcuation. but we can't do it simply.
Are you sure it can works?
  • #14
  • Jan 19, 2013 10:43pm Jan 19, 2013 10:43pm
Quoting jeuro
Non-sense, no one does it.

J.
Could you please explain?
  • #15
  • Jan 19, 2013 11:40pm Jan 19, 2013 11:40pm
Why do it at one broker? Use 2 different brokers.
  • #16
  • Jan 19, 2013 11:57pm Jan 19, 2013 11:57pm
Quoting jadedmikey
Why do it at one broker? Use 2 different brokers.
There are no problem to withdraw the profit right if using 2 different brokers? even I know there are big news on Saturday or Sunday?
  • #17
  • Jan 20, 2013 12:25am Jan 20, 2013 12:25am
Sure, no problem. But you pick the wrong pair. Nothing is going to move EURUSD 200 pips at open. It's too liquid, too many traders. You'll just get margin on one, and worst other side gets margnin call too. Your left with $ 130 on each broker. You have to be really fast.
  • #18
  • Jan 20, 2013 6:02am Jan 20, 2013 6:02am
Quoting shaukat113
very easy solution open Account with broker A and Account B open with broker Z. some big boys use this type of action but in diffrent way. they call many broker almost at same time and put large orders with complex math calcuation. but we can't do it simply.
There is no gap on Forex. It's open 24/7 .
Select a broker which does not close on Saturday and Sunday.

Tomcat98
  • #19
  • Jan 20, 2013 8:28am Jan 20, 2013 8:28am
Quoting klhh
Could you please explain?

No one in their right mind would do what is suggested in the first post.. Small boy or big boys. There is no math magic
in forex. Specially having read all the documents we agree to when we opened the account.
All Brokers have in their contracts that you could loss more then you initial deposit.... and the fist post scenario is one
case of how you could loss more then your deposit. And also by agreement they have the right to collect from you
what "YOU" lost by your stupidity. So, does not matter if you do it in 1 broker 2 broker or more. The broker in which
you loss more then your deposit will go after you for the difference.


Is this type of operation allowed?? Of course, no Brokers opposes to it. You can open any positions you want before the
the weekend. The point is that... why? or what for? ... there is no advantage to do it. Just creates problems for yourself.

Brokers DO NOT take orders while they are close for business. And if perhaps you do not know... Stops loss, Take profits,
buy stop/limits and sell stop/Limits are ALL NEW ORDERS. Also they do not feed prices to the clients accounts. . so, no way
they can ck for clients margin or stuff like that.

J.
  • #20
  • Jan 20, 2013 8:37am Jan 20, 2013 8:37am
Quoting Tomcat98
There is no gap on Forex. It's open 24/7 .
Select a broker which does not close on Saturday and Sunday.

Tomcat98

Sure money exchange is happening 24/7, and perhaps are brokers open for business
24/7 -... But gaps do exist.. of course they do. They can happen any time.
If no one in the world world want to sell or buy at a certain small range of prices, that means
the most broker will not quote and a gap would show on the charts. Any natural disaster,
emergency, big news or any other reason could prompt a Broker o Bank to stop quoting
price... which means they are not taking orders. And if the price is different at the time
they start quoting again and take orders... they will show gap in their charts.

J.
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