Question: Why/how profit cancellation happens to Forex account? Is it a common thing among brokers?
“Profit Cancellation” depends on the rules set by the broker.
There are hundreds of online Forex brokers in the world, and each one of them have got different trading conditions and rules.
For example, some of them restrict following trading activities on their trading platform:
- Use of EA(Expert Advisers) and other trading programs
- Use of API
- Scalping
- News Time Trading
- Any types of Arbitrage
- Hedging
So why the brokers does not authorize such trading activities on their trading platforms?
That is because these activities could work against the brokers and cause a loss.
It is often Market Maker brokers and brokers with Dealing Desk, restricting above activities because there is conflict of interest between traders and such brokers.
Or it could be because their trading platforms re not suited for such transactions.
Either way, the broker must mention what types of transactions are restricted in their contracts or other legal documents.
If you are sure that there is no such statement in any legal documents and seems unfair, you may be able retrieve the funds back by taking necessarily legal actions.
