ASK ME ANYTHING: Hoping to Help!

This is a discussion on ASK ME ANYTHING: Hoping to Help! within the First Steps forums, part of the Reception category; Originally Posted by piphoe if it was just random tom, i'd be up 3 ticks and down 3 ticks 50/50...but ...

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Old Oct 14, 2016, 9:06am   #33
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Originally Posted by piphoe View Post
if it was just random tom, i'd be up 3 ticks and down 3 ticks 50/50...but not like that,

as soon as i place the trade i'm out a tick or 2 immediately, never up a tick or 2 right away..

i have to grind those out

you don't see this too!!??
why don't you collaborate with a friend who has another account at the same firm and compare rates once you're in the position whilst your friend remains flat. if you buy EUR/USD for example at 15 and your friend still see's 14-15 still but you see 13-14 you will know the broker is applying some price bias to your account.

At least you will know for sure whether your broker is stitching you up.
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Old Oct 14, 2016, 9:20am   #34
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. . . At least you will know for sure whether your broker is stitching you up.
Hi highbury fx,
Do brokers do this on an account by account basis? If so, is the practice widespread or confined to just one or two? If the latter, would you care to say which ones?
Tim.
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Old Oct 14, 2016, 9:23am   #35
 
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Originally Posted by highbury fx View Post
why don't you collaborate with a friend who has another account at the same firm and compare rates once you're in the position whilst your friend remains flat. if you buy EUR/USD for example at 15 and your friend still see's 14-15 still but you see 13-14 you will know the broker is applying some price bias to your account.

At least you will know for sure whether your broker is stitching you up.
Pip and friend
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Old Oct 14, 2016, 9:37am   #36
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Hi highbury fx,
Do brokers do this on an account by account basis? If so, is the practice widespread or confined to just one or two? If the latter, would you care to say which ones?
Tim.
hi Tim

I've not seen it at the 3 spreadbet/cfd brokerages I've worked at although I did suspect it was happening to an account I used at a swiss broker back in 2004. I'd be surprised if it happens at any fca brokerages today but I wouldn't be surprised if it happened at brokers regulated in less stringent jurisdictions as it's an easy bit of code to write.

its very simple to see if its happening to you.. just compare 2 accounts, 1 in a position and 1 not in a position.

what probably is more prevalent is the automatic applying of arbitrary slippage on orders. that's more of a widespread problem i'd imagine and has the same result as price bias in terms of paying away unnecessarily pips.
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Old Oct 14, 2016, 11:06am   #37
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So if a stop on a long is hunted by your broker, but the market's still rising, why not get in a new long at the stop price?
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Old Oct 14, 2016, 11:18am   #38
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So if a stop on a long is hunted by your broker, but the market's still rising, why not get in a new long at the stop price?
pardon? if you're long and the market is rising your stop is not in danger.

price bias isn't just about hunting for stops, its a cheap trick to make you pay more spread on your exit. if you buy on a 13-15 price and they immediately move it to 12-14 they've effectively widened the spread on you.
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Old Oct 14, 2016, 11:27am   #39
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pardon? if you're long and the market is rising your stop is not in danger.

price bias isn't just about hunting for stops, its a cheap trick to make you pay more spread on your exit. if you buy on a 13-15 price and they immediately move it to 12-14 they've effectively widened the spread on you.

Surely you wouldn't buy at 15 and put a stop at 12?

With regards stop-hunting, there's no point me arguing that something can be done and how its done when it doesn't exist. I accept brokers' spreads do widen during the day but this is according to the level of risk they're carrying, there's no hunting going on here. We know this happens, and the people who get hurt are the traders who fail to allow for price noise.
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Old Oct 14, 2016, 11:35am   #40
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Have you seen the spread widening on FXCM on a Friday night and early doors on a Sunday? And don't forget the 10pm close every day - ridiculous ! The brokers seem to claim it's nothing to do with them and more to do with their liquidity providers (the banks).

My opinion is this is one of the tricks that ensures that most Forex retail traders lose. I'm not sure if it's happening with equities though.
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