Hi All,
Sorry if this is the wrong section but I would like peoples opinion on a spread blowout by my broker on Friday’s NFP . The trade I was holding was a GBPNZD sell. My stop was set at 1.9458 and I was stopped out at 1.9467 even though the sell price before and after the release never exceeded 1.9383, so 84 pips above the sell high.
My broker is an STP broker that uses ctrader. The ctrader info shows a market snapshot at the time of the closed trade which showed a bid rate of 1.9319 and an offer rate at my close price of 1.9467, 148 pips spread!!
Now I know that GBPNZD is a volatile pair with much lower liquidity but do others see this as reasonable?? Here is the reply from my broker when I questioned this;
It looks like at the time your stop got executed on Non-Farms at 3:29pm (GMT+3) the price was 1.9378 – your stop was executed at 1.9467 – meaning a spread of 90 odd pips occurred.
Looking at the one minute chart GBPNZD moved 70pips up and down on Non-Farms.
Unfortunately the market was extremely volatile on Non-Farms and with a very illiquid pair like GBPNZD there’s not much we can do on this occasion.
It’s a nice explanation but my trade was actually stopped out a couple of seconds before the 70 pips move up he mentions. The “70” pips move up was mostly the spreads narrowing again. The market snapshot provided by my trading platform does not lie and the stop out was at a time of a 148 pip spread a couple of seconds before the half hour.
Any and all opinions on this would be greatly appreciated. Should I take this as a lesson? Move Brokers? Hassle my broker some more?
Cheers