Trade Closed Out

[gtspeed]

Hi

Just a quick one , had a real odd day today as the week has gone really well and today had 3 trades all bounce out nowhere near the stop loss all giving money back to the broker IG.

Not come across this before is it normal for a trade to simply close out for no reason ?

 

[itspossible]

The best thing to do is phone them mate.
Are you sure they didnt hit the s/l on some sort of spike,

 

[gtspeed]

Really odd the graph shows not even close to stop. I heard of stop hunters but thought were a myth till today.

 

[tomorton]

Usually this is due to a wide spread. Bear in mind no chart shows the spread, just the bid price (some firms use the mid price, which is just an average between bid and offer).

 

[Aiman]

Smells like stop loss hunting

 

[petetrades]

Jeez, really? I was told recently by a respected forum member I know nothing of spreadbetting after mentioning wide spreads and order fills being an issue in risk management.

 

[tomorton]

Jeez, really? I was told recently by a respected forum member I know nothing of spreadbetting after mentioning wide spreads and order fills being an issue in risk management.

You're right about wide spreads. Its so easy to be holding (you think) a nice profitable position and find later you were taken out by a wide spreads hitting your stop must a minute after the London Open. In the past, especially when swing trading small cap shares by SB, I can remember cancelling my stops overnight and re-applying them after the first hour of trading, just to avoid the spread-stop. Its not stop hunting, its just risk management by the firm. When traffic lights turn to red, surely nobody things the authorities are trying to slow them down personally?

Order fills? Occasionally, I've had a message when trying to close a SB that there is insufficient liquidity: last time this was a small cap FTSE250 share. I try again a few minutes later and it goes through. Sometimes price is up, sometimes down, it doesn't matter when you're trading multi-day, there's nothing the firm can do to cheat you, even assuming they wanted to.

 

[barjon]

You're right about wide spreads. Its so easy to be holding (you think) a nice profitable position and find later you were taken out by a wide spreads hitting your stop must a minute after the London Open. In the past, especially when swing trading small cap shares by SB, I can remember cancelling my stops overnight and re-applying them after the first hour of trading, just to avoid the spread-stop. Its not stop hunting, its just risk management by the firm. When traffic lights turn to red, surely nobody things the authorities are trying to slow them down personally?

Order fills? Occasionally, I've had a message when trying to close a SB that there is insufficient liquidity: last time this was a small cap FTSE250 share. I try again a few minutes later and it goes through. Sometimes price is up, sometimes down, it doesn't matter when you're trading multi-day, there's nothing the firm can do to cheat you, even assuming they wanted to.

Aye, I mostly cancel stops overnight when fairly tight. The wide opening spreads only reflect what happens on the market though, albeit a touch wider since that's in lieu of commission.

Some spreads don't vary though, 1 point on ftse, naz and Dow (with some) and you can't get much tighter than that. Beware the slight (and sometimes not so slight) bias in the price relative to the actual market. Mostly, they continue with the same bias but if you happen to be on the wrong side of it when they change tack it can hurt a bit, or be nice if you're the other way.

 

[petetrades]

You're right about wide spreads. Its so easy to be holding (you think) a nice profitable position and find later you were taken out by a wide spreads hitting your stop must a minute after the London Open. In the past, especially when swing trading small cap shares by SB, I can remember cancelling my stops overnight and re-applying them after the first hour of trading, just to avoid the spread-stop. Its not stop hunting, its just risk management by the firm. When traffic lights turn to red, surely nobody things the authorities are trying to slow them down personally?

Order fills? Occasionally, I've had a message when trying to close a SB that there is insufficient liquidity: last time this was a small cap FTSE250 share. I try again a few minutes later and it goes through. Sometimes price is up, sometimes down, it doesn't matter when you're trading multi-day, there's nothing the firm can do to cheat you, even assuming they wanted to.

Fills would factor into the equation as limiting profit factor on trades. I've had many instances of price moving to my limit order, not getting a fill and quickly retracing back to near my entry price before eventually moving below my entry.

Thank you for confirming my previous concern that barjon was recklessly and callously embellishing spreadbetting by suggesting spreads are a non-issue.

 

[barjon]

Fills would factor into the equation as limiting profit factor on trades. I've had many instances of price moving to my limit order, not getting a fill and quickly retracing back to near my entry price before eventually moving below my entry.

Thank you for confirming my previous concern that barjon was recklessly and callously embellishing spreadbetting by suggesting spreads are a non-issue.

When you gain a little experience, Pete, you will be able to determine properly the degree to which the spreads are an issue.

 

[kalott]

Hi

Just a quick one , had a real odd day today as the week has gone really well and today had 3 trades all bounce out nowhere near the stop loss all giving money back to the broker IG.

Not come across this before is it normal for a trade to simply close out for no reason ?

let me guess

Forex?

https://www.dailyfx.com/forex/educa...014/02/13/Spreads_Can_Cause_Margin_Calls.html

 

[gtspeed]

No it was indices

let me guess

Forex?

https://www.dailyfx.com/forex/educa...014/02/13/Spreads_Can_Cause_Margin_Calls.html

 

[barjon]

No it was indices

Which particular one? It seems a bit odd to me since indices are usually fixed spread so there shouldn't have been any widening involved. If you're sure their price never came close then I should give them a ring to ask what happened. Be interested to hear what they say.

 

[f2calv]

One (or more) of the positions probably​ moved adversely and caused your available free margin to drop to £0 and so bye bye all positions? How big were your positions relative to your account size?

 

[barjon]

One (or more) of the positions probably​ moved adversely and caused your available free margin to drop to £0 and so bye bye all positions? How big were your positions relative to your account size?

Forget that - could be the answer.

 

[foroom lluzers]

Hi

Just a quick one , had a real odd day today as the week has gone really well and today had 3 trades all bounce out nowhere near the stop loss all giving money back to the broker IG.

Not come across this before is it normal for a trade to simply close out for no reason ?

Be very careful ,overnight you are trading I G's own market book .Some of these markets are not open , so you trade their own overnight prices/spreads (these are wider at night).

 

[foroom lluzers]

Forget that - could be the answer.

not really

 

[piphoe]

Platitudes of life coaches. They have a "saying" for everything.

I don't haave to "live thru" a jump off the cliff to learn it isn't good for me.

I kind of figured that out before i jump.

 

[foroom lluzers]

Fills would factor into the equation as limiting profit factor on trades. I've had many instances of price moving to my limit order, not getting a fill and quickly retracing back to near my entry price before eventually moving below my entry.

Thank you for confirming my previous concern that barjon was recklessly and callously embellishing spreadbetting by suggesting spreads are a non-issue.

He needs to change brokers , it will not happen at interactive brokers.

The buckets gain when a trader loses.