What was the reason BlinkX sent an email requesting clarification for the reversal trades?

BlinkX has sent an email seeking clarification for reversal trades for the following reasons. 

Risk Management: Reversal trades can be a sign of irregular trading activity. If a trader repeatedly opens and then reverses positions in a short period, it might raise concerns about market manipulation or churning. This could violate platform rules or regulatory guidelines. 

Compliance with Regulations: Regulators like SEBI (in India) have stringent rules about trading activity, and platforms need to ensure that traders are following them. 

Account Verification: Sometimes, a trader might have executed a reversal trade without proper verification of the position. BlinkX may ask for clarification to ensure that the trades were intentional and comply with their terms of service. 

Pattern Recognition: If BlinkX’s platform automated systems detect unusual trading patterns (like an excessive number of reversal trades), they might automatically flag the account for review. This could be a protective measure to prevent fraudulent activities.