I don’t know if you could get anyones opinion on this as I am fairly new to forex.
My broker closed out 4 of my profitable trades today for no reason, they are saying its being investigated.
One was on the GBP USD at 1.30pm today on the back of the retail sales from USA.
I had a buy stop 6 pips above current price, this then executed and the stopped it out 1 second later charging me a £77 spread, that cost me £1244.
I had 2 more trades in this market and as I was watching the price and profit go up on my screen they just closed as well.
I have £17k in my account and no where near my margin, also none of the deals that closed had any stop loss or take profit on them.
Is this fairly standard, I have put in a complaint and said I want compensation.
I don’t know if you could get anyones opinion on this as I am fairly new to forex.
My broker closed out 4 of my profitable trades today for no reason, they are saying its being investigated.
One was on the GBP USD at 1.30pm today on the back of the retail sales from USA.
I had a buy stop 6 pips above current price, this then executed and the stopped it out 1 second later charging me a £77 spread, that cost me £1244.
I had 2 more trades in this market and as I was watching the price and profit go up on my screen they just closed as well.
I have £17k in my account and no where near my margin, also none of the deals that closed had any stop loss or take profit on them.
Is this fairly standard, I have put in a complaint and said I want compensation.
You may need to think again about this approach, Justin.
For [I]many[/I] reasons.
Especially as you’re trading without a stop-loss (you may need to re-think that, too: power-cuts and internet interruptions are not unknown, and it costs nothing to enter at least a “disaster-stop” routinely with all trades - something of a “no-brainer”, really?!).
In the long run, “trading the news” against a counterparty market-maker is a pretty sure way of stacking the deck against yourself, and to put it mildly a sub-optimal strategy. One way or another, if you’re any good at it, they’ll find ways to make it difficult or impossible for you, because it’s [I][U]their[/U][/I] money you’d be taking, not “money from the market”, and in fast-moving markets (i.e. at news times) they don’t have time to lay off their positions.
If you’re bad at it (which most people are, given that it’s so easy to get the overall direction [I]right[/I] and [U]still[/U] lose money), you lose from it, and if you’re good at it, one way or another they may not let you do it for long anyway.
You’re in the UK, I think? Try making a £100 “each-way double” bet against a bookie on the second-favourites of each of two 8 runner handicap horse-races: as soon as you have [U]one[/U] winning place-bet, they’ll either restrict you to £1 for your next bet or close your account. Their shareholders insist on it. They don’t want to lose their money over the long-term to people who are more or less “exploiting an anomaly in the system”, and they have sophisticated software which can easily identify and flag up the betting-patterns/trading-patterns of clients who do that . You’re really trying to do something similar, by trading the news. If you can find a way to make it pay via an ECN broker, instead of a counterparty market-maker, that’s no problem, because it won’t be their money you’re winning … but that’s not so easy. You can see, I think, that problems like these are always more likely to arise when you’re trading [B][U]against[/U][/B] your broker rather than [B][U]via[/U][/B] your broker?
Lexys so [I]now [/I]we know what you are doing while waiting for your trades to work out…!
Just34nam, if you had adequate margin and no stops or limits in place then you certainly have reason to demend an investigation. Where is your broker based and what kind of regulation does it come under?
The reaction to retail sales was quite rapid today and many non-ECN brokers use algorithmic methods to control (or manipulate, depending on your view!) their spreads and in this situation a 6-pip stop will easily get swallowed as the spread widens like a blue whale gulping plankton. And if you are using an MT4 platform it can even be that the price you are stopped at by your broker is even beyond the candle on the chart.
Hmmm, just noticed that you have an identical discussion about this going on another thread so just ignore my above comments, sorry.
Yeah, I have same question in my mind as Eddieb, it’s hard to know much without knowing which broker did this? So please put up some name, so we can know better, I had such issue with Instaforex where they took away my profit due to their co-called 5 minutes closed trading rule!
Hi Everyone,
thanks for all the responses, here are the complete details on the trade.
It was on the GBP USD market Friday 12th August, 1.30pm UK time based on the USD advanced sales news at 1.30pm UK time.
I put a buy stop 10 pips above current price, and a sell stop 10 pips below current price 30 seconds before the news came out.
I did not put a stop loss on as I was watching the trade at the time and it was only going to be open for maybe 30 seconds to catch the move which ever way the news went. I have done this before on big news releases and its worked well.
So the news came out and the market started moving up, it hit my buy stop and opened the trade, then 1 second later it closed the trade and charged me a £70 spread. I had placed the order for 2 lots. It cost me £1200 in lost profit. I had plenty of money and margin on the account. I now believe the dealer XTB is a MM, so I am thinking I need a DMA broker? I know I am new to trading, but cannot see how trading news like this is dangerous, unless the market shots up 10 pips then drops down, but as I monitor it I can just close it out, and if theres no movement I just close of both lines as they have not been triggered. Any views on this would be welcome, thanks guys.
Hi
thanks for all the responses, here are the complete details on the trade.
It was on the GBP USD market Friday 12th August, 1.30pm UK time based on the USD advanced sales news at 1.30pm UK time.
I put a buy stop 10 pips above current price, and a sell stop 10 pips below current price 30 seconds before the news came out.
I did not put a stop loss on as I was watching the trade at the time and it was only going to be open for maybe 30 seconds to catch the move which ever way the news went. I have done this before on big news releases and its worked well.
So the news came out and the market started moving up, it hit my buy stop and opened the trade, then 1 second later it closed the trade and charged me a £70 spread. I had placed the order for 2 lots. It cost me £1200 in lost profit. I had plenty of money and margin on the account. I now believe the dealer XTB is a MM, so I am thinking I need a DMA broker? I know I am new to trading, but cannot see how trading news like this is dangerous, unless the market shots up 10 pips then drops down, but as I monitor it I can just close it out, and if theres no movement I just close of both lines as they have not been triggered. Any views on this would be welcome, thanks.
10 pips is nothing on this pair, especially around news announcements when 50 may not be enough. It’s very possible that both your buy and sells were triggered in a second or less such is the volatility, so the buy opened your order and the sell closed it.
£17k is a lot to have in your first account, especially if you have little or no prior knowledge of forex.
If I were you I would withdraw most of this, taking you down to say £2k.
Get along to the free school on here and spend a few months learning, keep reading the forums, and trade with only 0.01 lot sizes so you can afford to take some losses while you learn
Thanks, that makes sense, but their software lets me place multiple buy stops and sell stops, if it had gone in their favour they would not have closed it out.
I think I need to get an ECN broker by the sound of it, as I seem to do ok trading news.
