I am writing to inform everyone of the unfair practices of FOREX dot COM . NO MARKET ACCESS and TRADE FORCE OUT WITHOUT MARGIN CALL (DELETED TRADES BY FOREX dot COM)
As you may be aware on April 20th, 2020 The US Oil Futures market experienced an unprecedented situation where Oil Futures reached negative territory.
Please see attached document with screen shots and explanations for how the events occurred.
Apologies as a new user I am not able to post more than one image at a time or an PDF attachment, so I am putting together a TWO part summary due to editing limitations.
Technically the market went -$40.00 which raises several questions.
If those price are real, Why would Forex dot com not make them available for trading?
Who would pay someone $40.00 a barrel to take oil away?
If price went below zero, the margin shouldn’t be further into the negative, it should switch to positive margin!
THIS IS TOTAL MARKET MANIPULATION and UNFAIR PRACTICE by FOREX dot Com.
Thanks for your replies, please read both of my posts and attachments carefully. I think you will better understand the situation.
Herlina, you paint quite a sordid picture. Sorry you’re going through this. As traders we have no rights. At least not many that the so called regulating agencies purport to protect. I’m convinced that these regulators exist really to protect the brokers. I hope your case gets resolved in your favor and proves me wrong.
The brokers dont trade with -ve numbers even if the futures went -ve. 0 is the lowest number and then there your position would be closed as there is no market. Your margin only counts when price is positive. When it goes negative the position is done. I dont know of any broker who would trade -ve price.
So you’re upset you’re position lost because the positions as closed when futures went to -ve numbers. I dont think you have an argument. You can complain to them and try.
Agree. When I heard some oil had gone negative I just assumed all private retail traders positions would have been immediately voided by the brokers, and only the deposited funds and proceeds from previous trades would remain.
Brokers are not a public service. If they can’t make money from transactions and cannot hedge their risks in doing so, they just close their doors.
You must work for a broker! The market no matter the condition should be a “Free Market” thus allowing for a level playing field. If prices go negative, we should be able to trade negative numbers. Whether or not they are prepared for such a matter is not the responsibility of the trader.
As communicated to you on April 22, 2020, the price for a barrel of WTI oil became negative for the first time ever on April 20, 2020. This unprecedented move, a result of oversupply, weak demand and physical storage issues, lead to the price for the May WTI contract trading as low -$40.32 per barrel, ultimately settling at -$37.63 for the day. Negative pricing created challenges for our settlement process and our US Crude Oil May contract settled at a price of $0.01, not reflecting the negative pricing of the underlying market.
To ensure proper alignment with the underlying market, we reviewed all impacted long and short positions to determine whether a cash adjustment was required to correctly reflect the price of the market at the time of the negative pricing and an adjustment was made to your account to reflect the correct price of the market for the US Crude Oil positions you held.
Please contact me privately with the best number and time to reach you and I would be happy to schedule a call to discuss your account in more detail.
