Is your “reputable broker” [B]actually[/B] a broker?
Or is it a [I]counterparty market-maker [/I]who holds your deposited funds, makes up their own prices, makes up and interprets all the rules governing your trades, holds the other side of your positions and [U]has an incentive for you to lose money[/U]?
A [B]“broker”[/B] is someone who executes a trade on your behalf in an underlying market (in this case in the interbank market) to which you don’t yourself have access, and has no incentive at all for you to lose money.
Call me a skepchick, but I suspect from what you say that your “reputable broker” probably [B]isn’t[/B] really a broker at all.
I trade mostly 8-pip and 15-pip movements, myself, and for me a ten-pip slippage would clearly be a nightmare and a disaster, and [I]totally[/I] unmanageable. I wouldn’t be able to run my business at all, if that happened more than once in a blue moon.
the broker is OANDA. I also never expect 10 pips difference, the spread for this pair is 3 pips. from the chart, it’s definitely no hit and excluding the spread. meaning my stop loss to the offer price is 10 pips huge.
serious advice needed. now Oanda told me the spread was 35.1 pips due to the volatility involved when the data was released. may i ask which broker has such high volatility? the reason why i am persisting that it is not my fault is because it was not indicated on the chart that my stop loss was hit, there is a difference of 17pips on MT4 and 10 pips on fxLabs(if you are using Oanda, you will know) before my stop loss was hit. please advise, many thanks!
here is the chart that i am talking about, the point where it happened was 1.05918 and my stop loss was at 1.0602. then now the reason that they gave is that i should used the ASK candlestick chart. note that my chart is in ASK price too, so to say there are 2 different charts for same pair.
A trader have no control over slippages, it happens very often with several brokers especially during high impact news time. Avoid trading at that time is the only safe act you can do.
I see what you mean, Krafty. But regarding the chart you’ve posted, please also excuse the observation that if what you’ve shown took you out of a trade, you should perhaps really think about trading with wider stops (perhaps especially on a currency with such wide and rapidly fluctuating spreads as the Singapore Dollar)?
Be aware, also, that Oanda isn’t, strictly speaking, a “broker”: it’s a counterparty market-maker: you’re trading directly against them, and it’s inevitably going to produce the occasional problem when your counterparty also holds your funds and makes up and interprets the rules governing the transactions.
Sounds a lot, but as an aside, traders often wonder how such annoying slippage happens.We built a trading simulator to show how easily a marketmaker’s range may differ from that reported in the “market”.
thanks all, something which i don’t understand is that they have 2 charts of ASK price, one chart is in ASK price, the other is chart with median pricing but also in ASK price. my other broker has only one chart in ASK price and you can select either BID or ASK price.
Some color to this kind of queries is needed.
Volatility---- is not related with your broker.
Volatility is related with buyers and sellers and their risk appetite and uncertainty they are currently experiencing in regards to the price of the instrument they trade
Oanda is the reputable broker known for the quality of execution.No questions about it.
CADSGD- Really? Cross rate. Not liquid. Spread on Oanda minimum 4-6 pips -5-6 average, news/openings/closings 20 -50 pips.
Suitable for beginners- No.
Is 10 pips slippage considered large in CADSGD during news or volatile markets? No. It is comparable to 2-3 pips slippage in EURUSD ( 2 *Spread).
Charts in Oanda- Mid price.
Buyers- follow ASK price
Sellers- follow Bid Price
What I understand is your broker may update the mt4 from pip. 0.0001 insted of 0.00001. You may have see 0.00010 movement on your chart which actualy 1 pip. Not 10 pip
Yes; it tends to be true of many “brokers” occasionally, and especially around times of anticipated high volatility (such as economic/fundamental announcements/news).
Again, be aware, also, that Oanda [B]isn’t[/B], strictly speaking, a “broker”: it’s a counterparty market-maker: you’re trading directly against them, and [I]it’s inevitably going to produce the occasional problem when your counterparty also holds your funds and makes up and interprets the rules governing the transactions[/I].
note that my open position to my stop loss was around 100+pips, this was taken into account of the technical and fundamental reasons, so now my choice was hit due to 6 pips difference. and i never expect it to turn out this way due to their spread. i just started trading with them for about 5 months. i dumped my previous broker cos’ i deemed them to be charging wide spreads. i have been around trading for 3 years and this is my first time encountering this.
You will learn many new things every day in forex. As your career progresses you will find many things that will amaze you, distract you, disappoint you but you have to overcome all of such difficulties to become a good trader.
Hi everyone. After latest FOMC announcement and high volatility on market I’d like to discuss annoying issue -
slippages. How do everyone trying to reduce it influence on one’s trading?
I have seen a lot of statistics from different brokers in percentages, but haven’t seen any statistics in points (USD).
Does anyone calculate such statistics for own trading?
