London Capital Group closed all my October Oil positions | Forex Factory

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Attachments: London Capital Group closed all my October Oil positions
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London Capital Group closed all my October Oil positions

  • #1
  • First Post: Sep 22, 2015 9:58pm Sep 22, 2015 9:58pm
LCG closed all my October Oil positions suddenly in the middle of the day and without roll over!!
so disappointing from a broker that is supposed to be regulated.

below the correspondences from newest to oldest:





Dear Mr Elshami,

Thank you for your email.

When you open a position in a futures market you are implicitly accepting the fact that the position will be closed upon the expiry date of the contract unless you contact us directly to request the position is rolled-over.

As a senior member of our Client Services department I can confirm that the closures of your positions are correct and we will not be able to credit back any losses realised through these trades.

We appreciate that you may have previously been contacted by other brokers prior to the expiry of a futures contract, however it is not our policy to do this and it is also not something that we are obliged to do.

If you have any further questions please do not hesitate to contact us.


Kind Regards



Tom Price

Customer Support
---------------------------------------

What do you mean correctly closed? You can never close a customer's position without notification.
You excuse to not notify customers of the rollover is weak, you cannot ask every Relationship manager to send emails to their customers!!
Rollover should be automatic without me asking to do so, that has been the case with all previous brokers i dealt with. Not once ever that my oil positions got closed from any broker.
Omar, I want this email to be escalated to senior management. And i will not compromise on refunding my loss of $266.
Awaiting your response at the earliest.
Ahmed.

-----------------------------------------------

Dear Mr Elshami,

Thank you for your email.

Unfortunately we will be unable to take any retrospective action or credit funds back to your account as these positions were all correctly closed as a result of the contract you were trading expiring.

Please note that if you choose to trade a futures contract it is your sole responsibility as the client to ensure you are aware of the expiry date of that contract.

We are able to roll any positions into the subsequent month/quarter contract if you request this before the expiry, however LCG are not able to contact individual clients to advise of the imminent expiry of their positions.

If you have any further questions please do not hesitate to contact us.


Kind Regards



Tom Price

Customer Support
-----------------------------------------------------
Dear omar,
As discussed, my oil positions were suddenly closed in loss of approx. USD266/-
Kindly arrange to credit back the amount in loss as i was not willing to close my positions in addition i was not warned about contract expiry to adopt hedging technique and avoid closing of all my positions.

--------------------------------------------------------------
  • #2
  • Sep 22, 2015 11:36pm Sep 22, 2015 11:36pm
hi​
they should have informed you befor expiray ,you also hold some of the responsibility .
have a nice day please
focus while relaxed to see better
  • #3
  • Sep 22, 2015 11:48pm Sep 22, 2015 11:48pm
Quoting orabi
hi​ they should have informed you befor expiray ,you also hold some of the responsibility . have a nice day please
i have been trading with markets.com before LCG, they notify their customers before expiry and the roll over is done automatically. they never close your positions.
  • #4
  • Sep 23, 2015 2:39am Sep 23, 2015 2:39am
I always check expiry date before opening positions. It would have been a plus if broker notified you before closing position, but it doesn't reflect negatively if they didn't. Its trader's responsibility to know expiry dates.
About rollover, this is what is mentioned on their website;
Quote
"If you chose to roll any quarterly or monthly contracts, you will need to contact us shortly before our expiry date to leave a rollover instruction. For indices, commodities and forex contracts, we will close the trade at our midpoint and offer the subsequent quarter at the corresponding level. Please note that on rollover of futures contracts, the existing trade is closed, realising any profits or losses incurred and a new position is subsequently opened."
  • #5
  • Sep 23, 2015 2:46am Sep 23, 2015 2:46am
This is information from LCG website:
Rollover
We also offer the facility to rollover futures contracts. If you chose to roll any quarterly or monthly contracts, you will need to contact us shortly before our expiry date to leave a rollover instruction. For indices, commodities and forex contracts, we will close the trade at our midpoint and offer the subsequent quarter at the corresponding level. Please note that on rollover of futures contracts, the existing trade is closed, realising any profits or losses incurred and a new position is subsequently opened.

You can blame only yourself. This is a business where every smallest mistake will cost money and still some people can't be bothered reading technical specs of trading conditions.
  • #6
  • Sep 23, 2015 3:02am Sep 23, 2015 3:02am
Quoting johnnycash
This is information from LCG website: Rollover We also offer the facility to rollover futures contracts. If you chose to roll any quarterly or monthly contracts, you will need to contact us shortly before our expiry date to leave a rollover instruction. For indices, commodities and forex contracts, we will close the trade at our midpoint and offer the subsequent quarter at the corresponding level. Please note that on rollover of futures contracts, the existing trade is closed, realising any profits or losses incurred and a new position is subsequently...
​
they also are blamed not careing enough for there business nor there customers position they will be out of my broker list for sure for such act
all have a nice day
focus while relaxed to see better
  • #7
  • Sep 23, 2015 3:17am Sep 23, 2015 3:17am
On the other hand looks like some people don't even know how rollover works.
Even if broker have contacted trader - what would be his actions? He needs to close loosing position and open new in upcoming month contract. One way or another he would take that $266 loss anyway. So he still can open new position and count that rollover completed (most likely with some price gap between closing price and opening price in two different contracts )
Again - this that happens when people don't know what they doing.......
  • #8
  • Sep 23, 2015 3:22am Sep 23, 2015 3:22am
Quoting johnnycash
On the other hand looks like some people don't even know how rollover works. Even if broker have contacted trader - what would be his actions? He needs to close loosing position and open new in upcoming month contract. One way or another he would take that $266 loss anyway. So he still can open new position and count that rollover completed (most likely with some price gap between closing price and opening price in two different contracts ) Again - this that happens when people don't know what they doing.......
I am sure they contacted the trader, he probably just forgot or maybe doesn't even know there is a mailbox within the MT4 platform.
All contract expiration and contract expiration reminders are visible there.
  • #9
  • Sep 23, 2015 3:27am Sep 23, 2015 3:27am
Quoting orabi
{quote} ​ they also are blamed not careing enough for there business nor there customers position they will be out of my broker list for sure for such act all have a nice day
It is not their job to watch every trader and their positions.
Your positions are your responsibility. I am 100% convinced they did what they had to do and did what they do for every trader trading with LCG.
  • #10
  • Sep 23, 2015 4:29am Sep 23, 2015 4:29am
Quoting ash1485
LCG closed all my October Oil positions suddenly in the middle of the day and without roll over!! so disappointing from a broker that is supposed to be regulated. below the correspondences from newest to oldest: Dear Mr Elshami, Thank you for your email. When you open a position in a futures market you are implicitly accepting the fact that the position will be closed upon the expiry date of the contract unless you contact us directly to request the position is rolled-over. As a senior member of our Client Services department I can confirm that...
A very embarassing E-Mail that shows that you do not have any idea about futures trading. For futures, it's standard that the position gets automatically closed until you notify them. It's your fault, not LCG's
Forex is a losers game.
  • #11
  • Sep 23, 2015 5:42am Sep 23, 2015 5:42am
Quoting Dkam
{quote} It is not their job to watch every trader and their positions. Your positions are your responsibility. I am 100% convinced they did what they had to do and did what they do for every trader trading with LCG.
as a broker your job is to moniter your business and it is your customers interests which is profit so a folllo up for your customers position should be presented in futures and other instruments to protect him and your bussiness they are blamed and showed that customers profits is not among thier interest .i never liked them as i never like any fca companies they are a jock a lot did not recieve there money yet in ALPARI PROBLEM.​
have a nice day please
focus while relaxed to see better
  • #12
  • Sep 23, 2015 6:08am Sep 23, 2015 6:08am
Quoting orabi
{quote} as a broker your job is to moniter your business and it is your customers interests which is profit so a folllo up for your customers position should be presented in futures and other instruments to protect him and your bussiness they are blamed and showed that customers profits is not among thier interest .i never liked them as i never like any fca companies they are a jock a lot did not recieve there money yet in ALPARI PROBLEM.​ have a nice day please
  • #13
  • Edited 7:50am Sep 23, 2015 6:39am | Edited 7:50am
LCG is correct in closing all your positions; they are actually trying to protect you. I will explain. Futures contract is different from Forex in that there is actually delivery of the physical product underneath the contract which means that at the end of trading aka expiration of the contract, you actually have to deliver the physical product that the futures contract trades on. For this crude oil contract that you are trading, it's Light Sweed Crude Oil and each contract is for 1000 barrels of light sweed crude oil. So assuming you were trading in 1 oil contract, unless you have 1000 barrels of light sweet crude oil that you can deliver through pipeline, you must close the contract position by the end of trading for the contract to avoid the delivery obligation otherwise if you leave it open, you will be on the hook to actually deliver these crude oil and if you don't, you can be held breach of contract and be sued.

So LCG was trying to protect you by closing the position for you and they are NOT obligated to roll-over for you and they actually cannot without your further instruction because the roll-over is to a new contract, and without client instruction, they will be in violation of their FCA regulations if they do the automatic roll-over. FYI, the end of trading or expiration of this oil contract is ALWAYS THREE business days before the 25th of each month and if the 25th falls on a non-business day, then it's THREE business days before the business day immediately before the 25th. So for Sept., THREE business days before the 25th is the 22nd since the 25th falls on a business day.

All of the trading information for this futures product is available from the website of CME which is where this futures contract is traded on:

http://www.cmegroup.com/trading/ener...l?41920.62014=

Please read it before starting to trade in them. Like I said before, Futures is NOT the same as Forex where it's just a CFD that doesn't involve anything; at the end of the day it's just a re-adjustment of positions. Futures involves lot more and its trading is lot more regulated and structured.
Make your losses in demo. Earn your profits live.
  • #14
  • Sep 23, 2015 7:17am Sep 23, 2015 7:17am
I think LCG offers CFDs only, so ash1485 shouldn't be worried about obligations to deliver or take delivery of underlying asset (1000 barrels)
But that leaves me surprised how little attention people paying to knowledge about instruments they trying to trade.
I only can image that would happen then somebody with this kind of attitude would get in to options trading.
  • #15
  • Sep 23, 2015 7:35am Sep 23, 2015 7:35am
Quoting ash1485
LCG closed all my October Oil positions suddenly in the middle of the day and without roll over!! so disappointing from a broker that is supposed to be regulated. below the correspondences from newest to oldest: Dear Mr Elshami, Thank you for your email. When you open a position in a futures market you are implicitly accepting the fact that the position will be closed upon the expiry date of the contract unless you contact us directly to request the position is rolled-over. As a senior member of our Client Services department I can confirm that...
You should have known when your contract expiry, if you did not know that info then you should stop trading futures
  • #16
  • Edited 8:50am Sep 23, 2015 7:48am | Edited 8:50am
Quoting johnnycash
I think LCG offers CFDs only, so ash1485 shouldn't be worried about obligations to deliver or take delivery of underlying asset (1000 barrels) But that leaves me surprised how little attention people paying to knowledge about instruments they trying to trade. I only can image that would happen then somebody with this kind of attitude would get in to options trading.
Oh if that's the case then LCG doesn't really need to close his position that abruptly. Trading for the contract still goes on although lot more sparingly after the contract's expiration. But LCG still wouldn't be able to roll over his positions without his specific instructions.
Make your losses in demo. Earn your profits live.
  • #17
  • Sep 23, 2015 8:23am Sep 23, 2015 8:23am
Quoting trader121
{quote} A very embarassing E-Mail that shows that you do not have any idea about futures trading. For futures, it's standard that the position gets automatically closed until you notify them. It's your fault, not LCG's
I came from Markets.com who used to automatically roll over the position with refund or deduction on the gap occured in prices between contracts, so yea for me that is not standard.
  • #18
  • Sep 23, 2015 8:29am Sep 23, 2015 8:29am
Quoting johnnycash
I think LCG offers CFDs only, so ash1485 shouldn't be worried about obligations to deliver or take delivery of underlying asset (1000 barrels) But that leaves me surprised how little attention people paying to knowledge about instruments they trying to trade. I only can image that would happen then somebody with this kind of attitude would get in to options trading.
Yes i could be blamed for not reading their trading conditions, but i never thought it might be different from my previous 2 brokers. Leaving all the knowledge to you though.
  • #19
  • Sep 23, 2015 8:33am Sep 23, 2015 8:33am
Quoting SmallPaul
{quote}You should have known when your contract expiry, if you did not know that info then you should stop trading futures
I don't know if you can tell me what to trade or do! Shut it if you don't have something useful to say.
  • #20
  • Sep 23, 2015 8:34am Sep 23, 2015 8:34am
Quoting Forexia
LCG is correct in closing all your positions; they are actually trying to protect you. I will explain. Futures contract is different from Forex in that there is actually delivery of the physical product underneath the contract which means that at the end of trading aka expiration of the contract, you actually have to deliver the physical product that the futures contract trades on. For this crude oil contract that you are trading, it's Light Sweed Crude Oil and each contract is for 1000 barrels of light sweed crude oil. So assuming you were trading...
Thank you for the information.
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