Stop being hit at the wrong price!

[VANTERHEYDEN]

I sold the DOW Friday evening at 8660 with Worldspreads.
The dow eventually closed under 8610 -- hence with that trade was in profit.
Before the market closed I put a stop in below 8660 meaning I was locking in profit and effectively creating a free trade.

I log on this morning - seeing the futures have risen I would of expected my Buy Stop to have been executed at the price I entered on Friday evening - meaning a small profit and no loss due to the upside move in the futures.

But because Worldspreads didn't open there Dow Futures until 7am this morning - they have executed my stop at their opening price 8795!!!!!!!

This is despite the fact that the futures opened when Japan opened more than 8hours before worldspreads bothered to get into work. The futures had steadily climbed throughout the night from 8600's to above 8800.

Are they within their right to get away with this?

 

[westernforce]

I would start with checking their advertised business hours when they are open. Might find they only open on a Monday at the Euro open.

 

[VANTERHEYDEN]

I would start with checking their advertised business hours when they are open. Might find they only open on a Monday at the Euro open.

And this allows them to get away with giving a price no where near your original stop?

 

[arabianights]

yep.

One to put down to experience

 

[westernforce]

And this allows them to get away with giving a price no where near your original stop?

Not a nice thought, but unless the stop is guaranteed there's not much that can be done. Have a look at some other brokers and check their trading times and what they offer by way of guaranteed stops.
Even then, stops may not be honoured during their "closed hours". It's probably all in the teeny tiny fine print.

 

[TomTom]

Damm, one question. Why leave open over the weekend when you had nice profits ?
Indeed this will be an expensive lesson learnt.
What was your proffit on Friday night ?
What was you loss this morning ?

 

[gle101]

Damm, one question. Why leave open over the weekend when you had nice profits ?
Indeed this will be an expensive lesson learnt.
What was your proffit on Friday night ?
What was you loss this morning ?

An alternative broker (open during exchange hours) is needed, so one is able to hedge the position in order to lock in profit.

 

[VANTERHEYDEN]

Stupidly I have many brokers - But had this position open with Worldspreads.

I simply was under the assumption that if the stop price was hit with this outfit then thats the price i would get. Will teach me to use this broker - tight 2 point spread during the day on the dow - but the amount of hassle and slow service makes me think twice about using them too much.

 

[gle101]

Stupidly I have many brokers - But had this position open with Worldspreads.

I simply was under the assumption that if the stop price was hit with this outfit then thats the price i would get. Will teach me to use this broker - tight 2 point spread during the day on the dow - but the amount of hassle and slow service makes me think twice about using them too much.

Having a position during the weekend is always a big risk, until the exchange opens and one can hedge he position with somebody else.

 

[Lee Shepherd]

Stupidly I have many brokers - But had this position open with Worldspreads.

I simply was under the assumption that if the stop price was hit with this outfit then thats the price i would get. Will teach me to use this broker - tight 2 point spread during the day on the dow - but the amount of hassle and slow service makes me think twice about using them too much.

Hi mate,

So am I right in thinking that you've read lots on trading, done loads of backtesting, plenty of study into market behaviour and have even checked you own mental state to make sure you can handle the losses as well as the winners and you're telling me that you've never checked the broker your going to use nor read the contract for terms and conditions with them?????????

Lesson learnt me old fruit.


Now you know this, go forward and start earning money.

 

[Caps4444]

I sold the DOW Friday evening at 8660 with Worldspreads.
The dow eventually closed under 8610 -- hence with that trade was in profit.
Before the market closed I put a stop in below 8660 meaning I was locking in profit and effectively creating a free trade.

I log on this morning - seeing the futures have risen I would of expected my Buy Stop to have been executed at the price I entered on Friday evening - meaning a small profit and no loss due to the upside move in the futures.

But because Worldspreads didn't open there Dow Futures until 7am this morning - they have executed my stop at their opening price 8795!!!!!!!

This is despite the fact that the futures opened when Japan opened more than 8hours before worldspreads bothered to get into work. The futures had steadily climbed throughout the night from 8600's to above 8800.

Are they within their right to get away with this?

Unfortunatley WorldSpreads do this.......only FX is monitored 24hrs a day.

However their system is weak....they have a lot of freezes, which if you are monitoring their platform, you can make good profits on them!

 

[TomTom]

An alternative broker (open during exchange hours) is needed, so one is able to hedge the position in order to lock in profit.

Yes I use DMA minly with SB Firms to do ver nights but use 24 hr firms and allways use a 24 hr rolling index

 

[TheGoose]

Sorry to plug my own firm here, but shortsandlongs offers free guaranteed stops!