PLEASE HELP - Price dispute with broker

[HappyTrader101]

Hi all,

I have a technical query and will try to explain it as best I can as I am now in a dispute with my broker and currently still in an unfavourable trade running ££££’s of losses.

So I’m in a buy position going long on WTI Crude at 5153.9
I have my limit order at 5171.7

The dispute is with the chart types (Bid/Ask).

On the Bid chart, the highest price reached was 5171.0
On the Ask chart, the highest price reached was 5173.8

Now because I’m selling, surely I should be going by the ask price chart? As when I’m a position you always seek to look at the opposite graph type to exit. I.e. if I’m going short on a position and want to exit, I would look at the bid price (highest price someone with pay for it), similarly if I’m going long on a position and want to exit my position then I would be looking at the ask price (highest price I can sell it for).

Please correct me if I am wrong however I believe that my broker is in the wrong here as the asking price (opposite to my long position) has crossed my limit order and it should have been cleared.

Many thanks,
HappyTrader101

 

[tomorton]

Most firms will say in the small print that their charts are for guidance only, while the quotes they offer are the definitive prices in a transaction.

In any case, the exit price on your long is the bid price, and the market never reached your order level.

Interested that you got both bid and ask price charts - I have seen firms offer either bid price or mid-price charts but not bid and ask. Are both the charts you refer to from the broker?

 

[HappyTrader101]

Most firms will say in the small print that their charts are for guidance only, while the quotes they offer are the definitive prices in a transaction.

In any case, the exit price on your long is the bid price, and the market never reached your order level.

Interested that you got both bid and ask price charts - I have seen firms offer either bid price or mid-price charts but not bid and ask. Are both the charts you refer to from the broker?

Yes both charts are from the broker, I have the option to choose from the Ask price and the Bid price but surely if I want to close my position I look at the Ask chart, as this is opposite to going long??

 

[HappyTrader101]

Most firms will say in the small print that their charts are for guidance only, while the quotes they offer are the definitive prices in a transaction.

In any case, the exit price on your long is the bid price, and the market never reached your order level.

Interested that you got both bid and ask price charts - I have seen firms offer either bid price or mid-price charts but not bid and ask. Are both the charts you refer to from the broker?

Please see attached screenshots of my long position with Ask and bid price charts. I am certainly under the impression that to close my position because I am long, that I would be looking at the ‘Ask’ chart?

Markets are now closed till 11pm GMT Sunday, as to what I do with with position, now I am not sure. I though I was right so I held onto it hoping that a. The price would go back up and b. The broker would be responsible for closing and compensating the discrepancy.

P.s. this is the first time I’ve held onto an unfavourable position this long after it has gone against me and also after trading hours. I’ve gone against ALL of my rules and this loss could set me back a good few days of hard work.

Any advice is most welcome.

HappyTrader101

 

[tomorton]

Just stick to the prices quoted. Through your broker, WTI is 5047.8 for you to buy and 5041.8 for you to sell. If you are already long and want to close your position, the closing price would be 5041.8.

Consider how this would work if you wanted to buy and immediately sell WTI, before price can change. You buy at 5047.8, sell immediately at 5041.8 and the broker makes the spread as profit. But if your argument were correct and you could buy at 5041.8 and immediately close the trade at 5047.8 while price hasn't even moved, then you would make the spread as profit: the broker would be giving away free money. That can't be right, it doesn't happen.

 

[HappyTrader101]

Can I get a second opinion for this thread pls?

Also unsure what to do about this position now, whether to close it immediately at Open tomorrow night or hold, hop and pray price moves more in my favour so I can exit at lower losses.

With the way oil has been lately, I’m fearful it’ll continue lower one mistake could cost me a lot of money

 

[tomorton]

Mine WAS the second opinion, the first was from your broker...........

 

[barjon]

Can I get a second opinion for this thread pls?

Also unsure what to do about this position now, whether to close it immediately at Open tomorrow night or hold, hop and pray price moves more in my favour so I can exit at lower losses.

With the way oil has been lately, I’m fearful it’ll continue lower one mistake could cost me a lot of money

If you want a second opinion about whether tomorton was right in his post 5 above then YES he was. It’s a fact not an opinion. You really should get to grips with all this before you start throwing money about.

 

[hatemypips]

Hi all,

I have a technical query and will try to explain it as best I can as I am now in a dispute with my broker and currently still in an unfavourable trade running ££££’s of losses.

So I’m in a buy position going long on WTI Crude at 5153.9
I have my limit order at 5171.7

The dispute is with the chart types (Bid/Ask).

On the Bid chart, the highest price reached was 5171.0
On the Ask chart, the highest price reached was 5173.8

Now because I’m selling, surely I should be going by the ask price chart? As when I’m a position you always seek to look at the opposite graph type to exit. I.e. if I’m going short on a position and want to exit, I would look at the bid price (highest price someone with pay for it), similarly if I’m going long on a position and want to exit my position then I would be looking at the ask price (highest price I can sell it for).

Please correct me if I am wrong however I believe that my broker is in the wrong here as the asking price (opposite to my long position) has crossed my limit order and it should have been cleared.

Many thanks,
HappyTrader101

Your trades are executed always at the bid price. In case of selling you will be charged spread as if you bought the asset, brokers run this scheme to avoid charging their costs when you quit position because of uncertainty with price in the future.

 

[NVP]

if you are trying to close out a buy position the broker sim only going to be interested in the lower price regarding settling and closing out positions

likewise the opposite if you were trying to close out a sell position ....the broker will only look at the higher of the 2 prices on offer ....

think of it like this

heads they win , tails you lose ......

the poor poor brokers have to make a profit ......how else could these poor dears survive with us nasty capitalist traders taking advantage of them ?

N

 

[Splitlink]

Can I get a second opinion for this thread pls?

Also unsure what to do about this position now, whether to close it immediately at Open tomorrow night or hold, hop and pray price moves more in my favour so I can exit at lower losses.

With the way oil has been lately, I’m fearful it’ll continue lower one mistake could cost me a lot of money

Never mind second opinions. You should be out of the trade and argue about it after. Do you keep your contract notes? I keep mine until I am satisfied with the resulting P&L.

 

[sideways-sid]

HappyTrader101, the fact that you have disputed tomorton's excellent explanation of your fundamental misunderstanding of spreadbetting, says that you should close the trade, stay out of the market, and have a think about your trading approach / methodology etc and perhaps reset your trading style.

 

[Hoggums]

When you close a long you do so at the Bid. Not the ask price (otherwise that would be a recipe for printing money). The bid price never reached your limit so it wasn't closed.

 

[new_trader]

Your trades are executed always at the bid price.

No. I think you need to read through this thread carefully too.