Just spoke to Trading Desk regarding a Long open position I have in GBPJPY because I felt I was close to being stopped out. I don't use a Stop Loss, basically because I don't trust them. I've learnt from experience that no sooner do you get stopped out and the trade starts to resume in the trend you traded at. I explained to the trader that I felt that once I was stopped out the price would start to resume in an upward trend. He informed me that he could see exactly how much margin I had which was approx. 45% and he explained that I wouldn't be stopped out until my margin reached 20%.
I then said that if he was able to see the exact margin I had left what was to stop them from stopping me out, not only that they could have a database of everybody within say 20% to 30% of their margin and then stop them out.
He tried to reassure me that 'My Word Is My Bond' , that it wouldn't be ethical and all that! Personally I think all that 'My Word Is My Bond' etc was left behind with the LIBOR and FX Rigging Scandals!
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.