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Any broker allows this type of trading?

  • #21
  • Jan 20, 2013 9:43pm Jan 20, 2013 9:43pm
Quoting klhh
Hello, let's say I have 2 standard account under same name in a same broker:
Quoting klhh

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...



Sorry but am i the only one who literally just doesn't understand how the maths behind this works?? :S lol

Im from UK and so here we make trades at '£ per pip' not at 'lots'.


But so in my understanding this guy wants to-

Buy the market at £10 per pip @ 1.3000
+ at the exact same time
Short-sell the market at £10 per pip @ 1.3000

Then when market reaches 1.2800 he wants to close both trades, losing 200pips on trade A / making 200pips on trade B.

You then have to rememember that he will have to also pay the spread cost of atleast 2-4pips on BOTH trades.


So overall all hes done is break-even by making/losing £2,000 at the exact same time, so earnt £0.
But ontop of that he will of paid the spread cost of atleast 4pips (£40) just for the 'privelledge' of having made those 2 trades.

And so overall hes just lost £40.



I haven't got a clue how that is immoral or stealing.... :S

As either ive totally misunderstood what he means, or it is just plain stupid as all hes doing is paying the broker £40 for nothing.... LOL
  • #22
  • Edited 11:21pm Jan 20, 2013 10:48pm | Edited 11:21pm
Quoting Spanish89

So overall all hes done is break-even by making/losing £2,000 at the exact same time, so earnt £0.
But ontop of that he will of paid the spread cost of atleast 4pips (£40) just for the 'privelledge' of having made those 2 trades.
And so overall hes just lost £40.
I haven't got a clue how that is immoral or stealing.... :S
As either ive totally misunderstood what he means, or it is just plain stupid as all hes doing is paying the broker £40 for nothing.... LOL

Hello Spanish89.

The whole idea was to do it during over the weekend and that for some reason a 200 pips gap occurred while the Broker was close for business.
The fallacy of the tough is that the Broker (being closed and not taking orders) would execute a normal margin Call on the account that is losing
at the proper time, say when the price was 1.2898 at which would cut the loss and still leaving the account with some 26usd positive balance .

So, at market opening when the price is 1.28 he would have 2000 profit in 1 account and loss of 974 in the other.
Problem is that when Brokers are closed an gone to the beach, they do not stop out anything nor execute anything, not even margin calls.
Point is that some broker wanting to avoid exposing their own money due to clients mistakes or bad intentions, raise the margin required
for positions hold over weekends.

J.
  • #23
  • Jan 21, 2013 7:45am Jan 21, 2013 7:45am
Ahhhh, so he just is trying to find a broker who is so lazy that they would let his account open gap down in a negative balance of about £1,000,
but then not bother to chase him up for that money then... haha
  • #24
  • Jan 21, 2013 8:41am Jan 21, 2013 8:41am
Quoting Spanish89
Ahhhh, so he just is trying to find a broker who is so lazy that they would let his account open gap down in a negative balance of about £1,000,
but then not bother to chase him up for that money then... haha

Got the point exactly.
And then we wonder how come All broker get paranoid and use all type of rules, tricks, delays, and whatever
to protect their own ass from these type of practices and/or other technicalities some traders use to gain some
advantage due to their non-trading skills.

J.
  • #25
  • Jan 21, 2013 8:52am Jan 21, 2013 8:52am
Quoting jeuro
Got the point exactly.
And then we wonder how come All broker get paranoid and use all type of rules, tricks, delays, and whatever
to protect their own ass from these type of practices and/or other technicalities some traders use to gain some
advantage due to their non-trading skills.

J.
Bingo.

There's always the few cases of evil brokers being scammy, but most of the trading environment we think is silly is caused by people who'd do anything to scam a few bucks out of a broker.

Atop of that, despite a few people bringing up the fact that this would harm the broker, or as I put it, steal from them... even going so far to question the poster's ethics, he's clearly ignored all of this and kept focused on his goal of ripping off whoever is willing to pay him out on this trade idea. Tells you about some people's idea of morality.
FXGears.com
  • #26
  • Last Post: Jan 21, 2013 3:57pm Jan 21, 2013 3:57pm
Now I had that exact same idea recently. Here is how you might be able to get around with that

1. Find a partner
2. Each of you open a limited liability company (I think thats what they are called). Of course you will have to deposit a certain amount of cash to open it.
3. With each company open two seperate accounts, and trade your idea.
4. One of the companies will instantly be bankrupt, but hey.. it's got limited liability, so your personal money will be safe, and as far as i know, you will not personally be held responsible.
5. The other company will make a profit, which you and your partner can split a few years later.

Does that sound like it might work?
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