I have heard that some brokers use stop-hunting software. While I don't KNOW this to be the case, there have been many times that my stops have been hit, exactly, in quiet markets.
In Forex, I use one of the largest brokers.
The curencies are priced 3 decimal points out,
I.E.= 138.943 for the euro.
There are several times when my stop would be, let's say, at 138.943 and it would get hit exacty there- right down to the third decimal point and then the market would come right back.
I'm not paranoid, I know when a stop should legitimitaley be hit, but I also sometimes get the feeling that they are stop-hunting.
Has anyone heard anything about brokers using stop-hunting software?
In Forex, I use one of the largest brokers.
The curencies are priced 3 decimal points out,
I.E.= 138.943 for the euro.
There are several times when my stop would be, let's say, at 138.943 and it would get hit exacty there- right down to the third decimal point and then the market would come right back.
I'm not paranoid, I know when a stop should legitimitaley be hit, but I also sometimes get the feeling that they are stop-hunting.
Has anyone heard anything about brokers using stop-hunting software?