I had a position going my way so I decided to place a stop loss (like a trailing stop but then removed the trailing and used a fixed stop loss price). An hour later I check the chart and I see that the stop loss had been triggered and my position closed. However, looking at the chart the market price had never reached my stop loss and therefore should never have been triggered. What is the explanation for this happening? The currency I’m talking about is the audusd. Stop loss was 0.93366 at 15 : 36 : 36 (9/8/2014). If you check the audusd price against that time on fxcm trading platform you’ll see that the price never got close to 0.93366 (even several minutes before and after).
I would be extremely careful using FXCM because this has happened before. At first I thought it could be my mistake since I’m new to fx however this latest false stop loss trigger was very obvious. If this is true, then the courts need to shut them down this time instead of just fining them like before and letting them run wild again
I cant check the particular candle because you must be on a different time zone to my broker however it looks to me like it was a short trade and you haven’t taken the spread into consideration. did you have the ask price highlighted when you checked the price? and not just the bid price that draws the bars? The ask price will take you out, not the line on the chart.
I always turn the ask price on in MT4 when I am in a short trade just to remind me of the fact.
Its also very unlikely that a stop hunting algorithm run by a broker would close a winning trade. They know that the odds are in their favour that the client will close the stop loss and let a winner turn into a loser.
DT
It could have been the ask price as you say. Because from what I saw on the graph the price never touched my stop loss. Thanks for help. I already emailed Fxcm so we’ll see what they have to say
Hope they give you a good answer. To tell the truth, I have heard only good feedbacks about this companies. And plus big players like this have been working to long for the reputation, so I bet they’ll try their best to keep it up.
Like Dallytrader, I tried checking my AUD/USD charts but couldn’t determine the exact time to focus on, since I’m not sure of the time zone on your charts.
While you mentioned that you already sent us an email about this, the best step is to file a trade inquiry. That’s because the trade inquiry form asks you for specific details that will help the Trade Services Team complete their investigation of what happened. My colleagues have replied back to your email with a link to the form, but I’m posting the trade inquiry form here as well.
Jason
PS: On FXCM’s No Dealing Desk (NDD) forex execution, we offset each of your orders one-for-one with our 10+ competing liquidity providers. That means we’re not taking the market risk on the other side of your trade. Whether you win or lose money on the trade has no impact on our bottom line.
We make our money off the fixed pip markup we apply to the best bid and ask prices received from our liquidity providers, which acts as a commission. That means we make our money off your trading volume, not your losses, and we make the same amount whether your trade is closed for a profit or a loss.