Quote from: bV on March 30, 2013, 08:46:06 PM

Quote from: guruvan on March 29, 2013, 08:27:56 PM

currently, the additional clearings are a scam.

I wouldn't go so far as to say that it is a scam, but I believe it is at the very least deceptive practice and I would go so far as to say that it is a breech of contract. The text on the site defined a trading session is 24 hours, with a maximum trading range of 10%. Fireball, could you provide the original text that was on the site before you updated so that it can be considered?

I had contracts of BUJ3 with enough money in reserve to handle 10% movement, and had my finger on the button to add additional funds if the clearing proved to move the price down to a range that might put some of my contracts in jeopardy. The clearing actually moved the price range center from 103 to 106, so I did not add additional funds. The manual clearing I believe moved the price range center to 95, causing a loss of a very large portion of my positions as the price went down to 86. I've since closed all of my positions at a great loss to myself as I've lost all confidence that this site will perform as it says it will without making things up as they go.

I feel that this manual clearing should not have happened according to the definitions laid out on the site at the time. I feel that the exchange did this as a CYA disregarding the fact this is not a provision set forth and agreed upon with its customers. Some sort of compensation is due.

Thanks for being sane. I have to say, that previously we had many additional clearings, and this was not the problem.

I want to stress one specific fact, which clearly separates honest and dishonest behavior:
If an additional clearing followed by margin calls happened WITHOUT spot market movement into the same direction (or even worse, into different direction), then it's clearly an abuse.
If the spot market moves and additional clearing is done to adapt to changed conditions (and direction of futures price change corresponds to the spot market price change), then there is no dishonest behavior involved.

And every trader who trades futures must be well prepared and not over-leveraged. Because if spot market drops, and scheduled clearing happens, then your position would still be forcefully liquidated if margin was not enough.

It may sound strange from the exchange owner, but I strongly advise all of you to not overleverage. Trade with confidence, trade with safety. Leverage is a powerful mechanism, use it wisely.

However, I took your concerns and we are trying to abstain from additional clearings now. Instead, the proposed move to the 2 clearings per day would be beneficial.

As for the website contents, you can check archive.org for a trusted source, but I didn't rewrite anything, just added a clause about additional clearing possibility.