I use MB Trading and I have been holding a short position on EURCAD now for several days. For most of this trade, I have had a SL in the 70-pip range.
At the end of every "day" (5:00 PM EST), MB does carryover and the bid/ask on some of the exotics totally dries up. Specifically, my EURCAD position goes from being in solid positive territory to a horrific negative for 30-60 minutes, until the liquidity eventually comes back and my position recovers from this "false low".
Here's my question: Why doesn't my SL get triggered during these periods? Don't get me wrong - I'm extremely glad that it doesn't because this post-carryover low is really something of a mirage and when the market resumes normal activity my position recovers accordingly. If my SL was triggered in this period of extremely low volume, an otherwise winning position would get closed at a horrible loss. So apparently, MB does something very good in their software that avoids this, but I'm just curious as to how this could work? It would seem to me that if you're SL is hit, then the automatic software on the servers would immediately knock out your position.
Another question: Is MB the only broker that seems to apply this discretion when determining whether to trigger your SLs during periods of abnornally-low volume?
At the end of every "day" (5:00 PM EST), MB does carryover and the bid/ask on some of the exotics totally dries up. Specifically, my EURCAD position goes from being in solid positive territory to a horrific negative for 30-60 minutes, until the liquidity eventually comes back and my position recovers from this "false low".
Here's my question: Why doesn't my SL get triggered during these periods? Don't get me wrong - I'm extremely glad that it doesn't because this post-carryover low is really something of a mirage and when the market resumes normal activity my position recovers accordingly. If my SL was triggered in this period of extremely low volume, an otherwise winning position would get closed at a horrible loss. So apparently, MB does something very good in their software that avoids this, but I'm just curious as to how this could work? It would seem to me that if you're SL is hit, then the automatic software on the servers would immediately knock out your position.
Another question: Is MB the only broker that seems to apply this discretion when determining whether to trigger your SLs during periods of abnornally-low volume?