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once I see something fishy in a broker I never claim, But simply quit trading and take my own funds back. What must be clear is that HF is a pure market maker and when U try to scalp with them with fast trades, they respond with nasty digital trader plugins. Am not the first noticing thisQuote:
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I received this information from HF
The reason for my calls and also this email is to express my concerns in relation to the equity of your account. On Friday night after the market will shut the leverage for all the GBP currencies will be deducted to 1:25 and also for all the other currency pairs to 1:50 because of the British referendum. It appears your account is tremendously exposed at the present time so I will suggest you to take the necessary measures in order to protect your account.
I stay at your disposal if there is anything that you need.
I have some some hedge orders available but the short and long lots are not matching at this moment. If I balance short and long transactions will this leverage change impact for my current open orders ?
Think about this:
You Conduct a Market Maker brokerage. You've got 1000 customers. They All have deposits. Prior to a huge event you sit with the risk. They are able to restate loose than what is on their accounts. If they are right about the leadership following the event, they can win a great deal more than they risk loosing.
In example: Trader A has 100 USD in his account. If he's wrong with the management of the market following case, he might loose 1000 USD. However as a market maker you may face challenges getting him to cover the last 900 USD. When he's correct with the leadership, he will expect you to cover him the 1000 USD he's won out of you.
Let's say your customers is split 50-50 percent about the direction following the event, using their positions on the market. If the event is big enough you will have a negative risk to reward as broker.
A non market-maker broker migth rather give good advices or warnings to their customers, to assist them through the event. Whilst a market-maker is going to have to stick to these measurements as you mention to level the risk in play. .
Only my thougths.
Thank you for the advice, will that leverage change impact my currently opened trades, I have long and short trades but these brief and extended lots are equalQuote:
Originally Posted by ;
Depends of you equity. You'll need new margin cease call (10% in micro ) for dont blow off your account. Evident you may place more in this situation for spreads and others things...Quote:
Originally Posted by ;
I received this answer
I'm not really sure if this will help. By changing the leverage of the account the margin requirement will change and there fore the stop out level of the account. So you need to be sure you have enough equity in your account once the changes are going to take place.
This seems not acceptable becoz when we deposit $10 with there 1:1000 leverage. We can start a trade with lot 0.01, but after we start transactions should they alter the leverage to 1:25 it will close our all transactions https://www.forexforum.co.za/attachments/1525849149.jpg
is another brokers also reducing there leverages similar to this, as I see another brokers only changing their margin amounts not the leverage
I dont know, I mean sick just stay out of the market in order for this to pass, never was a lover of news and it just creeps me out. best of luck
Anyone worried about this movement?
We are pleased to inform you that HF Markets (SV) Ltd, a Company incorporated in Saint Vincent and the Grenadines, is currently part of the expanding HF Markets Group. Expansion of the HF Markets Group, effectively allows us to continue to supply our customers increased flexibility in Forex Conditions and a wider range of services in order to accommodate all of their trading needs.
With regard to the above, we'd like to notify you that your myHotForex account will be moved out of HF Markets Ltd to HF Markets (SV) Ltd, yet another investment company inside the HF Markets Group, with enrollment number 22747 IBC 2015.
The process of moving your account(s) begins on Saturday, 25th June 2016.
Hotforex should boost execution/conection/clearfedd it hasn't been following the contest (brokers).
Vacaciones culturales, very good vaions next week.
https://www.forexforum.co.za/attachments/1525849149.jpg
They have new regulation in South Africa, I think its now much better than offshore.Quote:
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