FXCM stoploss is dangerous.

This is a discussion on FXCM stoploss is dangerous. within the Forex Brokers forums, part of the Commercial category; Originally Posted by oildaytrader We really do not know who produced the video or why they produced the video.There could ...

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Old May 18, 2010, 4:22pm   #31
 
Jason Rogers's Avatar
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Re: FXCM stoploss is dangerous.

Quote:
Originally Posted by oildaytrader View Post
We really do not know who produced the video or why they produced the video.There could be a lot of reasons like slow internet on one broker feed,platform freezing etc

The market is too efficient to vary by more than a few pips.
Hi O D T,

I can confirm it was a technical issue on our side that has been corrected, and agree that it is unlikely for the market to vary by more than a few pips from broker to broker. This problem was caused by a substantial increase in the number of quotes coming in from the banks quoting on our platform, which created a lag in pricing on the platform. The problem has been corrected and we are actively monitoring the pricing to make sure it does not happen again. Any traders slipped on their trades due to this can open a trade audit and we will review the trade for a possible adjustment.

-Jason
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Old May 20, 2010, 10:05pm   #32
 
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Re: FXCM stoploss is dangerous.

jason,

just looked @ my wife's fxcm platform and the spreads as i type @ 5 pm est ; GBP/USD 16, USD/CAD 20, EUR/USD 14...that's enough examples, you get the idea


what gives??

edit: correction USD/CAD just went to 28 pip spread

Last edited by da-net; May 20, 2010 at 10:11pm.
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Old May 21, 2010, 6:52pm   #33
 
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Re: FXCM stoploss is dangerous.

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Originally Posted by da-net View Post
jason,

just looked @ my wife's fxcm platform and the spreads as i type @ 5 pm est ; GBP/USD 16, USD/CAD 20, EUR/USD 14...that's enough examples, you get the idea


what gives??

edit: correction USD/CAD just went to 28 pip spread
Hi da-net,

It's not uncommon to see spreads widen at 5pm EST whenever rollover occurs. Spreads yesterday at this period were much wider due to the volatility we have seen in the market as a whole.

Jason
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Old May 22, 2010, 3:50am   #34
Joined Sep 2008
Re: FXCM stoploss is dangerous.

Quote:
Originally Posted by da-net View Post
jason,

just looked @ my wife's fxcm platform and the spreads as i type @ 5 pm est ; GBP/USD 16, USD/CAD 20, EUR/USD 14...that's enough examples, you get the idea


what gives??

edit: correction USD/CAD just went to 28 pip spread
This is going to be controversial but I am going to say it anyway. I don't endorse bucket shop type brokers, but sure as heck, I'd rather trade with a bucket shop broker offering me 2 pip spread than an ecn/stp broker with a 20 pip spread on the same liquid currency. If you care to differ so be it. Good luck winning anything with your 20 pip spreads.

Peter
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Old May 22, 2010, 6:26am   #35
Joined Mar 2007
Re: FXCM stoploss is dangerous.

Quote:
Originally Posted by da-net View Post
jason,

just looked @ my wife's fxcm platform and the spreads as i type @ 5 pm est ; GBP/USD 16, USD/CAD 20, EUR/USD 14...that's enough examples, you get the idea


what gives??

edit: correction USD/CAD just went to 28 pip spread

How wide are the spreads around news releases?
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Old May 22, 2010, 12:41pm   #36
Joined Sep 2008
Re: FXCM stoploss is dangerous.

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Originally Posted by oildaytrader View Post
wake up .
hehe, yes, wake up, pboyles! You dare to question the wisdom of the legendary ODT?? What the hell were you thinking?? You deserve a slap in the head.

Peter
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Old May 24, 2010, 3:01pm   #37
 
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Re: FXCM stoploss is dangerous.

Quote:
Originally Posted by Jason Rogers View Post
Hi da-net,

It's not uncommon to see spreads widen at 5pm EST whenever rollover occurs. Spreads yesterday at this period were much wider due to the volatility we have seen in the market as a whole.

Jason
Jason,

I appreciate the answer. I have never seen spreads that wide with other STP/ECN brokers @ that time of day, even on Wednesdays when traders close positions to keep from paying the extended swap or during the JPY unwind a year or so ago and that was extreme volatility

So that leaves us possibilities such as; Does FXCM do business with "bad banks" or does FXCM add a little to the spread for profits, or is your statement corporate truth from FXCM

Quote:
Originally Posted by wackypete2 View Post
This is going to be controversial but I am going to say it anyway. I don't endorse bucket shop type brokers, but sure as heck, I'd rather trade with a bucket shop broker offering me 2 pip spread than an ecn/stp broker with a 20 pip spread on the same liquid currency. If you care to differ so be it. Good luck winning anything with your 20 pip spreads.

Peter
Wacky, I have to agree with you. I am very happy that it is a micro account and she trades small.

Quote:
Originally Posted by oildaytrader View Post
How wide are the spreads around news releases?
I don't know as I've never looked @ their platform while she was trading until she had a problem I outlined earlier. Also I have never seen their full lot platform or quotes on it.
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Old May 24, 2010, 4:02pm   #38
 
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Re: FXCM stoploss is dangerous.

Quote:
Originally Posted by wackypete2 View Post
This is going to be controversial but I am going to say it anyway. I don't endorse bucket shop type brokers, but sure as heck, I'd rather trade with a bucket shop broker offering me 2 pip spread than an ecn/stp broker with a 20 pip spread on the same liquid currency. If you care to differ so be it. Good luck winning anything with your 20 pip spreads.

Peter
The problem is that that is the most likely time you're going to be re-quoted from a dealing desk because they're offering a 2 pip spread whenever the actual price they can offset at is much worse. Unless of course you're on the wrong side of the trade and you'll be at a loss regardless.

With NDD execution, you know what prices are being offered so you don't have to wait for re-quotes to figure out what price the dealers are actually willing to accept.
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Old May 24, 2010, 4:15pm   #39
 
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Re: FXCM stoploss is dangerous.

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Originally Posted by da-net View Post
So that leaves us possibilities such as; Does FXCM do business with "bad banks" or does FXCM add a little to the spread for profits, or is your statement corporate truth from FXCM
The pip mark-up on the spread (how FXCM is generating revenue) does not change throughout the day.

Also as an FYI, this Friday there is no rollover for any of the currency pairs due to public holidays.

-Jason
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Old Apr 24, 2017, 10:20am   #40
 
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why?

Click the image to open in full size.


why i set stoploss but it not work and i loss all my money? Did you cheat me FXCM broker???
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Old Apr 24, 2017, 10:23am   #41
 
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Quote:
Originally Posted by Jason Rogers View Post
The pip mark-up on the spread (how FXCM is generating revenue) does not change throughout the day.

Also as an FYI, this Friday there is no rollover for any of the currency pairs due to public holidays.

-Jason
Click the image to open in full size.

why i set stoploss at 140.038 but it not work? Did you cheat me FXCM broker???
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Old Apr 25, 2017, 6:44pm   #42
 
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Originally Posted by lucifer24 View Post
Click the image to open in full size.


why i set stoploss but it not work and i loss all my money? Did you cheat me FXCM broker???
Hi lucifer,

If we fail to meet your expectations, or you have a specific inquiry or concern that requires a formal review, you are encouraged to file a trade inquiry https://www.fxcm.com/uk/forms/trade-inquiry/ . Our privacy policy does not allow us to discuss client account information publicly, and I would also caution you about posting your account number or any other sensitive information publicly to a forum which you would probably not want other people to know.

Discussion on Stop Loss Orders and French Elections

When triggered, stop orders become a market order available for execution at the next available market price. Stop orders guarantee execution but do not guarantee a particular price. Therefore, stop orders may incur slippage depending on market conditions. Slippage is a factor when trading any financial market, including the forex market.

Slippage occurs when the market gaps over prices or when available liquidity at a given price has been exhausted. Market gaps normally occur during fast moving markets when a price can jump several pips without trading at prices in between. Similarly, each price has an available liquidity. For instance, if the price is 50 and there is 1 million available at 50, then a 3 million order will get slipped, since 3 million is more than the 1 million available at the price of 50.

Slippage can be negative or positive.

It should also be noted that the French elections were held on Sunday which is why you see the significant gap on the 4 hour chart you posted from the close of trading on Friday to the open of trading on Sunday. Here's a closer look at GBP/JPY when viewed from the 1 minute chart with the Friday close and Sunday close circled:

Click the image to open in full size.

The close price on the Friday candle was 139.861 and the open price on the Sunday candle was 142.332. The market gapped 247 pips at the start of trading on Sunday! Weekend gaps are a risk especially due to major events like the French elections.

Execution risks including weekend risk, gapping, slippage, etc. are covered in detail on our website https://www.fxcm.com/uk/legal/trading-execution-risks/

Jason
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Old Apr 25, 2017, 10:17pm   #43
Joined Oct 2008
Quote:
Originally Posted by Jason Rogers View Post
.
Hi Jason, I saw your name under recent posts and I would be interested to hear your comments and thoughts on this thread.

http://www.trade2win.com/boards/spre...l-numbers.html

Don't be misled by the title, it is actually about the FCA's proposed changes to companies such as yours.

Kind Regards
Jason
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