Hello guys, I am having a problem I never encountered before. Now normally I dont trade over the weekends as you never know what will happen. This weekend however I saw high potential to the upside and decided to be long. I had a take profit level but the market gapped up 155 points above my tp. Still...my broker closed the position at the take profit level when market level was 150points higher at market open.
Is this fair to me? What should I do?
This is the conversation I just had with a representative of my broker...
Chat InformationThank you for contacting us. The next available agent will be right with you.
Chat InformationYou are now chatting with 'Client Services 60'
Client Services 60: Hello. My name is xxxx. How can I help?
me: I have a very confusing problem.
me: I had 2 orders open over the weekend with a predetermined stop loss and take profit
me: now if the market gapped against me and beyond my stop loss, the position usually closes where the market opens
me: correct?
Client Services 60: Yes, if the market gaps past the stop loss then the trade is closed at the current market price.
me: so then why is it that this weekend my take profit was at 118.30 on the Eur/Jpy but the market opened at 119.85 that my position was closed at take profit level...shouldnt it have been closed where the market opened..same as if you had a stop loss?
Client Services 60: A TP is different than a SL.
Client Services 60: A TP is a limit order. Limit orders are closed at the limit price. Stop orders are closed at the current market price.
me: is there an interbank link you can connect me to so that I see this written? Because I know that in general, any position that is beyond the stop loss or take profit level is closed at the market level
Client Services 60: You are correct in thinking that other markets are different. However, this is the way it is in the Forex market. There isn't a link that specifies this exact scenario.
me: it seems to me like something is not correct here. Thank you for this coversation. I will keep it in my records and do some research on the topic, including federal rules to see whether I was treated correctly or not.
Client Services 60: My pleasure, thank you for contacting IBFX.
Is this fair to me? What should I do?
This is the conversation I just had with a representative of my broker...
Chat InformationThank you for contacting us. The next available agent will be right with you.
Chat InformationYou are now chatting with 'Client Services 60'
Client Services 60: Hello. My name is xxxx. How can I help?
me: I have a very confusing problem.
me: I had 2 orders open over the weekend with a predetermined stop loss and take profit
me: now if the market gapped against me and beyond my stop loss, the position usually closes where the market opens
me: correct?
Client Services 60: Yes, if the market gaps past the stop loss then the trade is closed at the current market price.
me: so then why is it that this weekend my take profit was at 118.30 on the Eur/Jpy but the market opened at 119.85 that my position was closed at take profit level...shouldnt it have been closed where the market opened..same as if you had a stop loss?
Client Services 60: A TP is different than a SL.
Client Services 60: A TP is a limit order. Limit orders are closed at the limit price. Stop orders are closed at the current market price.
me: is there an interbank link you can connect me to so that I see this written? Because I know that in general, any position that is beyond the stop loss or take profit level is closed at the market level
Client Services 60: You are correct in thinking that other markets are different. However, this is the way it is in the Forex market. There isn't a link that specifies this exact scenario.
me: it seems to me like something is not correct here. Thank you for this coversation. I will keep it in my records and do some research on the topic, including federal rules to see whether I was treated correctly or not.
Client Services 60: My pleasure, thank you for contacting IBFX.
Different opinions highly valued, ignorant to slander.