AUDCAD spread widening

i dont understand what just happened in audcad pair… a sudden widening in the spread blew my account. My broker isnt taking the blame, they blame it on the the sharp movement in the pair… if its my broker or the market… im doomed lost 35 grand. Did it happne to anyone else? Would appreciate replies

Blacklist the broker
Have a better money management
Your lot sizing is probably too big

i am not sure, its co-incidence or something but same thing happened to me as well. i am not getting what the hell my broker did with my account. i have an account with Yadix and they just screwed me up when i was making a lot of money in my account. i had $20,000 with them and was making around $15,000 on my AUDCAD positions but due to some sudden spread widening, my account got wiped out in seconds. i am really not sure whether its broker specific or it was actual move as i cant see much things happening in the market. but this broker screwed me up very badly

Sorry my friend, you’ll need to give us full discloure of the trade if you want some help. Images would be nice to. Please tell us it wasn’t this recent move today .

they are just fake brokers who call them Pure ECN but they screw you up very badly when they find the right opportunity. i experienced the same 2 months ago with my broker. these kind of brokers never want you to make money, they will blew up your account and rip you off your money

Ouch. That is horrible. You’re definitely trading too big if 35 pip move wipes your account like that … what if it had gapped 200 against you?

Still I switched to Vantage due to a widening like this on USDCAD one morning at IC … when I called about it the bozo customer support guy started trying to teach me about pips and points … final straw for me

It was yesterday morning. Wont be able to provide images as they’ve disabled my account. Can’t access my trading history. They disabled ac as it went negative and im being told I have top up to regain my account to cover the negative balance. Its horrendous utterly ridiculous.

But I can tell you the positions that I had. Bought 15 lots AUDCAD at 0.98910 Time: 20.11.2016 arnd 11 PM GMT. After some losses I hedged my positions by selling 15 lots at 0.98650 Time 21.11.2016 arnd 3.30 am GMT. I am not sure what exactly happened arnd 9 am GMT my buy positions got closed at 0.97340 and my sell positions got closed 1.00562 with total loss of nearly $38k. When I asked for the explanation, they just told me that due to spread widening my positions got closed. Now that i told them that i’ll expose them on public forums they are “investigating” and would revert in 48 hrs.

Bro, I don’t have the time to chat tonight but I would love to understand this situation better. To me the numbers don’t add up. I tried to recreate on a chart but to me the bid price and spread must of gone insanely stupid

Who is your broker?

Who’s your broker?

Your position is hedged!!!
There is only a floating loss of mere 35pip
Spread can widen for 10000000 trillion pip.
There is no reason for the broker to close your position
Obviously this broker is a scam.

I cannot figure out how it’s possible to lose more than 35k only from spread widening when you are 100% hedged. And if both trades got closed at the same time around 9 am GMT what is that for a spread: bid 0.97340 / ask 1.00562? What was your balance when you opened the first trade, what was the generated loss when you hedged and what leverage you traded with on AUDCAD? Without exact info (indeed better with images) we can only guess what happened.

Who is your broker? Is it a market maker or? Because this factor really matters in your case. And why would your broker disable your account? Even though if it went negative, you should still be able to check your trading history, balance, etc. I don’t understand why it would be disabled. Do they have such policy? This loss is very suspicious, just from a spread widening… Did your broker explain you the reason for this spread widening?

I didn’t realize the original poster was hedged … that is shocking … blatant theft. Don’t name your broker yet. Keep that up your sleeve and maybe they will do the right thing … but we all want to know who it is if they don’t!

So what happened with your case @forexxx123? Any updates?

Sorry for a veryyy late reply. they did reimburse my principal deposit & i don’t trade with em anymore. Phew that was narrow escape. But they did not make it ugly and we mutually agreed on few terms and i was back with my funds.

Great news! Better later than never :wink: Maybe you told them that you have posted the case on the forums and the decided not argue with you :smiley:
However, you maybe need to think about better money management and/or trading strategy. You say you bought at 0.98910 and hedged some losses at 0.98650. e.g. you have 26 pips difference * 15 lots * 10 CAD per Pip = -3,900 CAD when you hedged. Either you are trading without any SL or you have 6 digits amount in the account and use really wide SL. IMO you should not risk that much on a single trade  It is not always the broker to blame.
Anyways I am glad you got your money back! Everyone love happy endings :slight_smile:
Cheers and good luck!