Compensation for negative account balances following "Black Thursday"

23 January, 2015

We would like to respond to numerous appeals from traders in the aftermath of the Swiss franc's "lift-off" on January 15.

Remember that as a consequence of the abrupt increase the Swiss franc's exchange rate relative to the main global currencies, which was caused by the Swiss National Bank's decision to abandon the cap on the CHF/EUR exchange rate, on January 15, 2015 many forex traders incurred heavy losses, leading not only to stopped-out transactions but also resulting in negative account balances, in some cases measured in hundred of thousands of USD.

Unlike most market participants, our company never requires reimbursement for losses from clients who have "gone into the red". In other words, under no circumstances will our clients be in a situation where they will "owe the company money". This is properly stipulated in the Group's General Business Terms (par. 2.6 (d) of EXNESS (CY) LTD's terms, par. 23.4 of EXNESS LIMITED's terms): "If a Stop Out execution has resulted in the negative equity of the Client's trading account, it will be compensated so as to bring Equity to $0."». Thus, our company always automatically compensates for negative balances in our clients' accounts.

"We believe that compensating for clients' negative balances is a perfectly acceptable practice and have no intention of abandoning it. The trading on the forex market undoubtedly entails high risk, but traders should not incur losses beyond the amount of their deposits in their trading accounts," said Petr Valov, Director of EXNESS.

"I must note that the events that have taken place in the market may impact many forex companies' policies as well as traders' preferences. Among brokers, the STP (Straight Through Processing) model had previously been believed to be 'risk free'. However, the sharp rise in the Swiss franc's exchange rate and the resulting losses have shown that trading on market maker accounts (where positions are not always sent directly to the market) may be preferable for private clients, because it gives the broker much greater ability to control risks."

Today the situation on the financial market is relatively stable, and many traders have already resumed trading financial instruments with CHF.


Source link  
Deloitte funds reports for 2016

We are pleased to announce the release of our annual Factual Findings report as prepared by Deloitte...

Exness extends endangered wildlife conservation partnership with WWF

As a proactive supporter of nature conservation, Exness recently renewed its partnership with World Wildlife Fund Russia, pledging funds to the conservation and reintroduction of endangered species - the polar bears and Persian leopards...

Exness Group reaches record-breaking monthly trading volume

It is with great pride and excitement that we share our latest news with our valued clients and partners worldwide! With the conclusion of January, the Exness Group recorded a total monthly trading volume of US$266 billion, a figure marking our highest trading volume yet!


Exness One+ live trading contest concluded with USD 33445 in The Big Pool

We have successfully concluded One+ Live trading contest with a total of 3,114 participants and a final cash prize pool of USD 33,445...

Reduction of delays in order activation in 3rd of series of trading improvements

In the 3rd of our series of trading improvements, we are pleased to announce that we have significantly reduced delays in the activation of almost all pending, Stop Loss and Take Profit orders, following the completion of key technical improvements made by our team of experts...

Unlimited leverage use extended in 4th of series of trading improvements

Exness is pleased to announce the latest developments which will substantially improve our clients’ trading and allow them more freedom and flexibility to apply their trading strategies with less hindrances and limitations...


Exness celebrates 2016 with launch of unique One Exness year-end campaign

Priding itself as a young and innovative broker, Exness once again launches a unique campaign—One Exness—with celebratory promotions designed to celebrate and thank clients for the collective achievements attained in 2016...

Exness to roll out unique offers and activities this New Year

Time to gear up for year-end celebrations and unique forex offers this December! Wrapping up 2016, it is an honor for us to be celebrating another year of achievements and milestones with you, our esteemed partners and clients...

Exness announces trading volume for Q4 2015

Exness Group today announced a total trading volume of 559.4 billion USD for Q4 2015, showing consistency in performance and stability as a leading online provider of foreign exchange...

  


Share: