DealCancellation by easyMarkets

Hi everyone,

Does anybody have real expirience with using this new tool for cancelling new deals?

Regards

I have just discovered and tested quite unique feature.

As far as I know there is only one broker with such offer.

It is very simple, you open a trade and if turns against market you can close it WITHOUT loss.

It works like insurance. You pay small fee to secure yourself in case of disaster.

If you are interested find out more. https://record.partners.easymarkets.com/_D0mElSY_ZrRi-DaPcIu1xGNd7ZgqdRLk/1/

So if I understand it correctly, I can open a long and short position at the same time, leverage it up by 100 times and once the fx spot changes by 50 pips I close both positions (within 1 hour ofcourse). With this I gain a 100% guarantee profit, if the cancellation fee is lower than the realized profit of the winning trade.

If this is true, than why is this trading suggested primarily for new fx traders? I mean, this way you can not loose. Where is the catch? Is the insurance fee then higher than the winning trade?

Tnx

slahov posted:
So if I understand it correctly, I can open a long and short position at the same time, leverage it up by 100 times and once the fx spot changes by 50 pips I close both positions (within 1 hour ofcourse). With this I gain a 100% guarantee profit, if the cancellation fee is lower than the realized profit of the winning trade.

If this is true, than why is this trading suggested primarily for new fx traders? I mean, this way you can not loose. Where is the catch? Is the insurance fee then higher than the winning trade?

Tnx

it might be just a new marketing trick from the broker to just get attention from a lot of trader to join them and after that they will change their terms for deal cancellation or simply will increase the fees to very high so that it will be useless to use that feature

slahov posted:
So if I understand it correctly, I can open a long and short position at the same time, leverage it up by 100 times and once the fx spot changes by 50 pips I close both positions (within 1 hour ofcourse). With this I gain a 100% guarantee profit, if the cancellation fee is lower than the realized profit of the winning trade.

If this is true, than why is this trading suggested primarily for new fx traders? I mean, this way you can not loose. Where is the catch? Is the insurance fee then higher than the winning trade?

Tnx

You cannot hedge the 'same' currency pair and use this feature at the same time, that is the catch.

I did not see that written anywhere. Maybe in small print :).

What about opening both positions like long USD/JPY and EUR/USD, before the NFP report? Is that allowed?

slahov posted:
So if I understand it correctly, I can open a long and short position at the same time, leverage it up by 100 times and once the fx spot changes by 50 pips I close both positions (within 1 hour ofcourse). With this I gain a 100% guarantee profit, if the cancellation fee is lower than the realized profit of the winning trade.

If this is true, than why is this trading suggested primarily for new fx traders? I mean, this way you can not loose. Where is the catch? Is the insurance fee then higher than the winning trade?

Tnx

It depends how much the market moves.

slahov posted:
I did not see that written anywhere. Maybe in small print :).

What about opening both positions like long USD/JPY and EUR/USD, before the NFP report? Is that allowed?

Guys why dont you test it.

Open account https://record.partners.easymarkets.com/_D0mElSY_ZrRi-DaPcIu1xGNd7ZgqdRLk/1/
Deposit like $50 and play.

lexy1022 posted:

slahov posted:
So if I understand it correctly, I can open a long and short position at the same time, leverage it up by 100 times and once the fx spot changes by 50 pips I close both positions (within 1 hour ofcourse). With this I gain a 100% guarantee profit, if the cancellation fee is lower than the realized profit of the winning trade.

If this is true, than why is this trading suggested primarily for new fx traders? I mean, this way you can not loose. Where is the catch? Is the insurance fee then higher than the winning trade?

Tnx

You cannot hedge the 'same' currency pair and use this feature at the same time, that is the catch.

You can. I did just try it.

Fee was $3.5 for 5000 EURUSD (one fee for long one for short)

Hmm, that is very interesting. Might give it a go with 1000$ for the next NFP. Fee doesn't seem to high either and might even work for less impact news.

Interesting .

This deal cancellation feature actually looks very attractive on the surface the way it has been presented on the broker's website. If there is actually any catch that can be known only after trying it and trading it for sometime using this feature.

The logic is very simple.

90% of the traders loose money in the market and hence, they will not send any deal cancellation orders to the inter-bank and hence, almost no risk of loss from their pocket.

In return, they will get huge amount commissions for each and every trade for both profitable and non profitable. So paying few profitable trades from that huge commissions will not be a big deal for them.

leo23 posted:
The logic is very simple.

90% of the traders loose money in the market and hence, they will not send any deal cancellation orders to the inter-bank and hence, almost no risk of loss from their pocket.

In return, they will get huge amount commissions for each and every trade for both profitable and non profitable. So paying few profitable trades from that huge commissions will not be a big deal for them.

Basically any broker could do so...

OK. According to the Client Agreement you can not abuse hedging, so to go long and short the same currency pair at the same time, it is not allowed. Quote from this agreement:

Hedging in bad faith. Hedging is a strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities. In effect, hedging in bad faith is the employment of various techniques but, basically taking equal and opposite positions in the same Financial Product or a Financial Product highly correlated at near the same time, indicating no interest in genuine trading. This can happen over a single account or over multiple accounts.

slahov posted:
OK. According to the Client Agreement you can not abuse hedging, so to go long and short the same currency pair at the same time, it is not allowed. Quote from this agreement:

Hedging in bad faith. Hedging is a strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities. In effect, hedging in bad faith is the employment of various techniques but, basically taking equal and opposite positions in the same Financial Product or a Financial Product highly correlated at near the same time, indicating no interest in genuine trading. This can happen over a single account or over multiple accounts.

I did open trades in both direction
I did protect them both
No prob so far

I think, if you will make a lot of money this way (especially on news trading), then they will start complicating :). Maybe even not payout profits.

slahov posted:
I think, if you will make a lot of money this way (especially on news trading), then they will start complicating :). Maybe even not payout profits.

Lets test it on NFP

I agree. I just opned an account with them and will try this with the bonus that you get at the begining. Than we shall see :)