I know that Oanda is notorious about widening spreads at news times, but this particular case seems strangely egregious (or is it just me?)...
My strategy consists of placing buy limit orders at around 20 pips above major resistance lines and sell limit orders below major support lines. I recently had a sell limit order in place at the price of 1.4253 on GBP/CHF. The order got filled at 8:30 a.m. EST, 4/17/15. I just so happened to be looking at the recent activity page of my trading app the exact moment that the order filled, and I immediately switched to my portfolio page to find that the trade was instantaneously at -52 pips. I then immediately looked at the rates, but the bid/ask spread was 1.4298/1.4305....
How in the hell did it get triggered when the bid wasn't that low and there was no news event relating to GBP or CHF that could've spiked the spread at 8:30 am EST?
I emailed support and this is the response I got: "Due to the news event, the spread widened to 40 pips (see attached diagrams)."
I emailed back explaining that there was no news event besides from news relating to the USD and the CAD.
Oanda's response back: "There was CHF retail sales and GBP related news earlier in the day, which resulted in the increase in volatility for the next few hours."
Looking at the attached chart, it just seems fishy to me. How can there be an instantaneous 40 pip drop on the bid to 1.4253, to trigger my sell order, and then an instantaneous reversion back to 1.4298/1.4305... 4 hours after the news event that was supposedly to blame?
My strategy consists of placing buy limit orders at around 20 pips above major resistance lines and sell limit orders below major support lines. I recently had a sell limit order in place at the price of 1.4253 on GBP/CHF. The order got filled at 8:30 a.m. EST, 4/17/15. I just so happened to be looking at the recent activity page of my trading app the exact moment that the order filled, and I immediately switched to my portfolio page to find that the trade was instantaneously at -52 pips. I then immediately looked at the rates, but the bid/ask spread was 1.4298/1.4305....
How in the hell did it get triggered when the bid wasn't that low and there was no news event relating to GBP or CHF that could've spiked the spread at 8:30 am EST?
I emailed support and this is the response I got: "Due to the news event, the spread widened to 40 pips (see attached diagrams)."
I emailed back explaining that there was no news event besides from news relating to the USD and the CAD.
Oanda's response back: "There was CHF retail sales and GBP related news earlier in the day, which resulted in the increase in volatility for the next few hours."
Looking at the attached chart, it just seems fishy to me. How can there be an instantaneous 40 pip drop on the bid to 1.4253, to trigger my sell order, and then an instantaneous reversion back to 1.4298/1.4305... 4 hours after the news event that was supposedly to blame?