Just before the market closed at midnight last friday, I had a SELL order open at a price of 13.043 HKDJPY and 0.78 volume . I didn't realise I had left the order open and when the market closed I had a floating loss of -16$, and my equity was 84$, don't remember the free margin
All this is mentioned in my trading account statement and daily confirmation emails I receive from FXOPEN(my broker)
At 12am today, when the market opened, i was shocked to see my account showing a negative balance of -16$, meaning a loss of -117$!!!! The opening price was 13.037 HKDJPY
I emailed FXOPEN and this is what they replied
<<<<<<<<<<<
Please be advised, we can definitely understand your frustrations, however, the reality right now is such, that your view, while being 100% accurate in theory, does not precisely work all the time in real world conditions. It happens due the presence of another crucial factor - bank liquidity.
As Ask price reached 13.118 level - the request to close your position was sent to Liquidity Provider. But LP has executed your order at 13.196. Note, your order was closed at market opening - period of low liquidity and high volatility.
Aslo we would like to add, that in your case, order execution was performed 100% according to terms of business.
Best Regards,
Trading Desk
>>>>>>>>>>>>>>
From past experience, I can surmise that the widening of spreads which happens normally between 12-1am is responsible. What i don't understand is how did my equity reach a negative balance??? Stop-out, as stated by FXOPEN, occurs at 50% of margin, and that should have happened before my equity zero'd out, but here it's in the negative!!!
Can someone help me make sense of all this? I'm trying to calculate the at what point the stop-out occurred and what my equity was then?
Was I cheated by FXOPEN??
All this is mentioned in my trading account statement and daily confirmation emails I receive from FXOPEN(my broker)
At 12am today, when the market opened, i was shocked to see my account showing a negative balance of -16$, meaning a loss of -117$!!!! The opening price was 13.037 HKDJPY
I emailed FXOPEN and this is what they replied
<<<<<<<<<<<
Please be advised, we can definitely understand your frustrations, however, the reality right now is such, that your view, while being 100% accurate in theory, does not precisely work all the time in real world conditions. It happens due the presence of another crucial factor - bank liquidity.
As Ask price reached 13.118 level - the request to close your position was sent to Liquidity Provider. But LP has executed your order at 13.196. Note, your order was closed at market opening - period of low liquidity and high volatility.
Aslo we would like to add, that in your case, order execution was performed 100% according to terms of business.
Best Regards,
Trading Desk
>>>>>>>>>>>>>>
From past experience, I can surmise that the widening of spreads which happens normally between 12-1am is responsible. What i don't understand is how did my equity reach a negative balance??? Stop-out, as stated by FXOPEN, occurs at 50% of margin, and that should have happened before my equity zero'd out, but here it's in the negative!!!
Can someone help me make sense of all this? I'm trying to calculate the at what point the stop-out occurred and what my equity was then?
Was I cheated by FXOPEN??