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easyMarkets: where is the catch?

  • #1
  • First Post: Sep 25, 2016 6:53am Sep 25, 2016 6:53am
Cancel a bad trade within an hour by paying a small fee?

first i'd like to know what the fee is and if it works as stated because it could be a life changer : make trades of 1 hour only and cancel all the bad ones, that's a dream come true

but
...

Where is the catch?

https://lnd.easymarkets.com/eu/en/de...alcancellation

Jeff
  • #2
  • Sep 25, 2016 7:17am Sep 25, 2016 7:17am
The catch is that you have to pay a fee before each trade to be able to cancel it later. Read the conditions !
In other words, it looks like they sell you an option to cover your trade.
Don't give up on your dreams. Keep sleeping.
  • #3
  • Edited 7:52am Sep 25, 2016 7:41am | Edited 7:52am
i read conditions but they don't say the amount you have to pay

is it by lot? or is it by trade? etc

if you just have to pay a little bit then it's ok i guess, can be interesting

Jeff

EDIT: oh i found a video and when trading 28000 GBP they have to pay 56 GBP to protect the trade. I think that's a bit much, price has to move quite a lot for this protection to be beneficial i guess

i think it's good for beginners

Jeff
  • #4
  • Sep 25, 2016 7:55am Sep 25, 2016 7:55am
I suggest you read the details a little more carefully.

http://www.ore.com/information/ecopatent/


http://www.ore.com/assets/universal/...tScheme(1).jpg
My comments are not to be taken as trading advice, not a financial advisor
  • #5
  • Sep 25, 2016 1:04pm Sep 25, 2016 1:04pm
it would be helpful if they can tell how much the cancellation fee is for every trade.

for instance if you are trading a pair with 1 lot how much it would be to insure the trade/cancellation fee for the trade.
  • #6
  • Sep 25, 2016 2:28pm Sep 25, 2016 2:28pm
Quoting Usmahn
it would be helpful if they can tell how much the cancellation fee is for every trade. for instance if you are trading a pair with 1 lot how much it would be to insure the trade/cancellation fee for the trade.
Obviously it will depend on the option price at that time. Do you understand how options work ?
Don't give up on your dreams. Keep sleeping.
  • #7
  • Sep 25, 2016 2:40pm Sep 25, 2016 2:40pm
Quoting Artcool
{quote} Obviously it will depend on the option price at that time. Do you understand how options work ?
yeah i know how they work but what i don't understand is how will they work with the cancellation.
  • #8
  • Sep 25, 2016 3:42pm Sep 25, 2016 3:42pm
Quoting Usmahn
{quote} yeah i know how they work but what i don't understand is how will they work with the cancellation.
Basically if you buy EURUSD and want to use the deal cancellation, they will check the cost of a PUT option at a very close expiration date and they will charge the cost of the premium plus their fees.
If price goes down and you want to cancel the trade, the option would be profitable and they will it at the same time and recover at least what what your trade has lost.

Of course, everything is probably planned and programmed in order to be sure they would make money every time.

I didn't check in details their offer but I'd bet it works like that, plus the fancy marketing cover up to attract newbies.

If you are thinking about using this right before the news, forget it. Options premium jump when increase of volatility is expected.

That said, it's still a good idea to offer to distinguish from their competitors. I would be curious to know feedback from someone who has tried to use it.
Don't give up on your dreams. Keep sleeping.
  • #9
  • Sep 25, 2016 3:44pm Sep 25, 2016 3:44pm
It's an options trade, so the trade isn't done until you exercise your option. So you're out strike price and insurance cover with this. Great.....

You wouldn't be able to do this in spot for obvious reasons.
If you're not in the 5% yet it's because you have to try 95% harder.
  • #10
  • Sep 25, 2016 4:19pm Sep 25, 2016 4:19pm
Quoting Artcool
{quote} Basically if you buy EURUSD and want to use the deal cancellation, they will check the cost of a PUT option at a very close expiration date and they will charge the cost of the premium plus their fees. If price goes down and you want to cancel the trade, the option would be profitable and they will it at the same time and recover at least what what your trade has lost. Of course, everything is probably planned and programmed in order to be sure they would make money every time. I didn't check in details their offer but I'd bet it works like...

Yes you're quite right and like you said some feedback would be useful from someone who has used it first before jumping into it.
  • #11
  • Sep 25, 2016 8:24pm Sep 25, 2016 8:24pm
I'm not in favour of this practice what so ever.
It sets a bad precedence and as others have highlighted there are other instruments to deal with like options that can be accessed.

The retail market should mirror the wholesale market as much as possible.

Enticing people to cancel trades is not the way forward.
  • #12
  • Sep 26, 2016 6:12am Sep 26, 2016 6:12am
Quoting ionone
Cancel a bad trade within an hour by paying a small fee? first i'd like to know what the fee is and if it works as stated because it could be a life changer : make trades of 1 hour only and cancel all the bad ones, that's a dream come true but ... Where is the catch? https://lnd.easymarkets.com/eu/en/de...alcancellation Jeff

There's no catch, price for this build-in option will vary depend on volatility and expected volatility, so if you think that for example you will buy and sell eurusd with insurance just before NFP for small amount of money you're wrong. I suppose you will have to pay something about 50 pips value for long and 50 pips for short, so 100 pips However, if you make a trade on boring market without any planned events it will cost for example 5-10pips. It's promotion trick to get some newbies Remember that Easymarkets earns only when client loses.
  • #13
  • Sep 28, 2016 6:02am Sep 28, 2016 6:02am
i made a mean of 10'000 H1 bars (EU) to see if the rebate would be profitable and i ended up with 106 pips per H1 bar.

Let's suppose we have a bad trade :
we have to pay the spread (let's suppose 20 pips) and the price of the cancellation (let's take 50 pips) : so a total of 70 pips

if the next trade is good (50/50 proba) : let's suppose we earn 106 pips (the mean), and with the previous cancellation : we made 36 - 20 = 16 pips

not a lot. It all depends on the price of the cancellation at the end. If it's more than (106 - 2*spread) then don't buy it.
that would be me advice.

Jeff
  • #14
  • Mar 28, 2018 7:44am Mar 28, 2018 7:44am
Inserted Video
  • #15
  • Jul 13, 2018 11:18pm Jul 13, 2018 11:18pm
Quoting ionone
i made a mean of 10'000 H1 bars (EU) to see if the rebate would be profitable and i ended up with 106 pips per H1 bar. Let's suppose we have a bad trade : we have to pay the spread (let's suppose 20 pips) and the price of the cancellation (let's take 50 pips) : so a total of 70 pips if the next trade is good (50/50 proba) : let's suppose we earn 106 pips (the mean), and with the previous cancellation : we made 36 - 20 = 16 pips not a lot. It all depends on the price of the cancellation at the end. If it's more than (106 - 2*spread) then don't buy...
Did you actually try this option during the news or how did you come to that conclusion?
  • #16
  • Last Post: Aug 8, 2020 10:58am Aug 8, 2020 10:58am
what about markets which are quiet like during Asian session wouldn't the premium be lower? Also, are you still charged if you hit your profit target within 60 mins? So, literally its like adding onto your initial spread fee?
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