I had a 53 pip slippage on a stop loss when there was a spike down on Sunday opening. Is such large slippages normal for Oanda? I’d like to hear about others who use Oanda. On a thread on the Oanda forum it was claimed that they are very tight with their orders and slippage is small. This has not been my experience so far.
If your not using Oanda what is the slippage situation like with your current Broker?
And lastly does anyone know if brokers who claim to have guaranteed stop losses are reputable? I found a list of brokers who claim to have GSL Guaranteed Stop Loss Forex Brokers
You didn’t say which pair you were trading. For exotics it sounds about right. I have seen 18 pip spreads on majors at Mon AM opening with FXPRO and GO Markets.
EDIT:
I have never heard of any of the GSL brokers. They might be dodgy.
Oanda during regular market hours will have one of the tightest spread-tables offered to traders, but during market opens (Sunday/Monday) and news releases, they’re spreads can spike a huge amount.
Oanda during regular market hours will have one of the tightest spread-tables offered to traders, but during market opens (Sunday/Monday) and news releases, they’re spreads can spike a huge amount.[/QUOTE]
He’s talking about a slippage on a SL on a weekend gap though…
Most usd pairs gapped around 60ish pips on Sundays open… If you had a stop loss 5 pips above price at Fridays close… And Sundays price opens 60 pips above… Nearly every retail broker will stop your trade out at Sundays open price and NOT where you had your SL order… This would explain a 50 something pip slippage.
If the same applies to News releases that would essentially make it impossible to trade around them. As it would be incredibly risky not to have a stop loss during a news release.
I wouldn’t trade in the middle of a new release. First you will pay a huge spread. Second you risk a slippage. Not as huge as the one you paid. Second you are playing against super fast algo or other players that get news before than you. You either take position 5 minutes earlier than the news release or better you decide what to do 5 minutes after the new.
About what happened to you as Pizza explained very well it is just a normal situation. The market unfortunately opens 2 hours earlier than Oanda. That is why the gap is created. Unfortunately in that 2 hours time your orders are not active and the stop loss is only activated at the opening price. I think if I remember well this is stated in their policy or term of service or something.
This is not common with this pair. However, one thing I do know about the USDJPY is that it moves very quickly at times. I have once made $350 on Profiforex platform with just one trade which lasted only 5mins. Actually I used a leverage of 1:500 and bought a One Lot size USDJPY and it moved in my favor. The move was so large and quick that it made me such amount in a short time. Most times I set my Maximum Deviation to 3 so as to avoid any slippage that might occur during execution. Well, if you are talking about stop order, I have not experienced any slippages. I only experience slippage during trade execution, which I am able to control via maximum deviation.
The market on U/J gapped down over the week-end. Most other brokers just show a gap however
on Oanda there was an actual down candle.
Any broker will gap down or up over the weekend, this is why unless you have an endless pot of money
you close out your positions on Friday before the broker close.
Oanda increase the spread about 2 hours before the close on Friday.
Not Oanda’s fault if you do not trade their demo account for a few weeks before trading real money.
Exactly, just off set the risk by closing on Friday close and re-opening on Monday open should it be feasible to do so. If you’re adamant to hold over the weekend then I should imagine you could scale out of your position so that less is at risk to a potential weekend gap. The problem is that weekend gaps are truly unknown, sometimes the market will gap in your favour, gap against you or not gap at all. It all comes down to your trading approach and how long you hold positions for.
For example, and this is just an example which has not been justified. If you have say only 20/30 pips left in your Stop Loss you may want to close before the weekend, but should you have over 100 pips left you may decide to eave the trade open over the weekend as it may be considered “unlikely” that a gap of greater than 100 pips will occur. If I was in your situation the first starting place I would look at is seeing if there is any correlation between a historical daily ATR and historical gaps. At least you will be able to build a filter as such would could be used to your advantage.
I guess it all comes down to how much work you want to put into it as opposed to not trading weekend gaps.
Just as a side note you may want to look into “Trading the weekend gap” on a monday - in most instances this gap will get filled once again by price.
There’s no advantage of holding stop losses and take profits over the weekend unless they are guaranteed. If price gap beyond your stop loss you pay the extra. If price gaps beyond your take profit, you only get the take profit and the broker gets the extra.
Also everyone on this forum loves Oanda for some reason. I tried their demo platform on MT4 and it was one of the worst for execution, plus massive spreads when there was a calendar release which really makes their ‘narrow spread’ a much wider spread on average. There are far better brokers.
Last time I looked the only “brokers” that allow guaranteed stops with no slippage are those of Spread Betting Accounts, IG (named IG Index a few years back) used to offer guaranteed stops, but these came at a premium of usually spread x 2 being the cost.
And yes, I don’t rate Oanda, terrible spreads and unnecessary spikes whilst other brokers feeds are more stable.
I’ve seen slippage on weekend gaps myself. It’s normal when market moving news or events over the weekend tries to be priced in right at the open, with very little liquidity. Remember, brokers have to execute at the “best available” bids and offers–and sometimes that can be 5, 10, 50, 100 pips away the Friday close, depending on the news.
I tried their demo. it smooth but for live, I dont try yet because I’m still building my capital.
1cent account? why trade with that amount? I want a big hit trade in 1 trade? caveat senior.