Lesson 4.7 - Client Fairness in Risk Decisions

A group of clients is highly profitable during a fast XAUUSD move. Internal market-risk impact is increasing, several alerts fire, and a Junior Dealer writes:

"These clients are hurting us. Should we restrict them now?"

The Desk Lead replies:

"Profit alone is not evidence of abuse. We investigate facts, follow approved policy, and separate company risk pressure from client-fairness decisions."

Dealing Room may see company exposure, client behavior and execution outcomes at the same time. That access creates responsibility. Dealers must not turn risk pressure into unsupported client accusations or unauthorized actions.

Principle	Meaning
Evidence before conclusion	Do not label behavior without data
Fair treatment	Apply rules consistently and objectively
Approved authority	Material actions require approval
Complaint independence	Investigate complaints from facts, not company risk pressure
Record keeping	Decisions must be reviewable later

• Do not call a client abusive, problematic or coordinated based only on profit.
• Do not change trading conditions informally because company risk pressure is increasing.
• Do not delay or weaken complaint investigation because the client is profitable.
• Do not use emotional language in tickets, chats or handovers.
• Do not apply restriction, leverage change, spread change or routing change without approved policy, Shift Leader confirmation and the relevant authority.

Situation	Dealer May Do	Dealer Must Escalate
Client group is profitable	Collect evidence and monitor	Any restriction or client classification
Execution complaint arrives	Preserve logs and investigate objectively	Client-facing conclusion and compensation decision
Exposure rises quickly	Escalate with numbers and Shift Leader confirmation request	Approved risk-control or trading-condition review
Possible abuse pattern appears	Build evidence package and notify the Shift Leader	Account action, client communication or enforcement decision
Emergency condition occurs	Follow emergency SOP	Any exception outside normal authority

Weak wording:

"Client is dangerous and should be stopped."

Professional wording:

"Group A shows short-hold, event-concentrated XAUUSD flow with favorable short-term price movement after execution and material company-risk impact. Evidence package is under review. Request Risk lead decision on approved monitoring or control action."

Professional Dealers protect both company risk control and client fairness. When an abnormal trading pattern is observed, the Shift Leader must be notified. Risk pressure never justifies deciding root cause independently, blaming the client, expanding the handling scope or making unauthorized changes.

Completion Criteria

• Can explain the key risk or operational objective of this lesson
• Can identify the required systems, data, or evidence to review
• Can describe the correct escalation or handling process
• Can apply the lesson correctly in a supervised scenario