Hi all,
My broker has a problem with their MT4 chart prices. They recently made a change from fixed spreads to floating spreads. They're still working out all the bugs, and at this moment, I prefer not to name them before I give them a chance to fix the issue (I reported it).
It would help me if others would please perform this simple check (even when the market is closed as it doesn't matter). Does your broker have this problem with New Order (tic) vs. chart prices differing? Or do the prices match as they should?
Look at a GBPJPY chart, preferably M1 timeframe. Then use the command: Charts -> Properties -> Common-tab -> "Show Ask Line" (select to turn on).
Next, either look at the Bid/Ask prices in the MarketWatch window, or pull up a New Order form for GBPJPY.
Compare the Bid and Ask prices between the New Order form (tic) vs. the regular chart. Do both Bid prices match? Do both Ask prices match?
On my attached picture, you notice that the Order Form Bid price is 228.70 but the regular chart Bid price is 228.71 (or 1 pip higher). Similarly, the Order Form Ask price is 228.78, yet the chart Ask price is 228.76 (or 2 pips lower).
When I look at all the other pairs, it seems that sometimes either the Bid or the Ask prices match but never both. The larger the spread, the more likely there is a difference of at least 1 or 2 pips on one or both prices.
Thank you!
Pips4life
P.S.
This 1 pip Bid price difference really messed me up last night. I calculated a 61.8 Fib retracement price on a chart, then I put in a Sell Limit order for that exact price and an initial 26 pip S/L, and a 55 pip trailing S/L. I had no fixed T/P as I had hoped the market was in a total reversal and would keep going down, and I'd wake up massively in profit. (Yeah I know a 55 Trailing S/L isn't big enough for all the typical swings of a big move, but this was a comprimise to at least move me closer to B.E. for the first swing).
However, at the very least, I was pretty confident that fib level would bounce by at least 55 pips or more and my trailing S/L would trim my S/L and put me into profit. Well, the *chart* shows the price hit exactly my fib level to the very pip, and price bounced 81 pips! I should have made +26 minus ~8 spread, or approx. 18 pips with my trailing S/L. Instead, the order didn't trigger before the bounce!!!! Why?? Because of this stupid 1-pip difference between what I calculated vs. what the New Order Bid price was. The next time it came back up to that Fib level, all the "bounce" energy was gone, and of course it opened the order and blew right through it and hit my -26 S/L. At least it was a small position and a relatively small -26 pip loss, but it *should* have been a +18 pip gain!
One final comment: I like making money when I sleep, and I dislike missing gigantic moves that may happen when I sleep or am away... so I'm working on setting up more limit orders at key levels that I think the market will bounce big, or even reverse. But as I'm not always watching the market, I keep these lot sizes smaller, and for better or worse, I'm trying smaller S/L values for this type of action. Still undecided if it's worth it or not... If anyone has any ideas on managing such orders with something more intelligent that a basic trailing S/L and/or fixed T/P levels, I'd love to hear them.
My broker has a problem with their MT4 chart prices. They recently made a change from fixed spreads to floating spreads. They're still working out all the bugs, and at this moment, I prefer not to name them before I give them a chance to fix the issue (I reported it).
It would help me if others would please perform this simple check (even when the market is closed as it doesn't matter). Does your broker have this problem with New Order (tic) vs. chart prices differing? Or do the prices match as they should?
Look at a GBPJPY chart, preferably M1 timeframe. Then use the command: Charts -> Properties -> Common-tab -> "Show Ask Line" (select to turn on).
Next, either look at the Bid/Ask prices in the MarketWatch window, or pull up a New Order form for GBPJPY.
Compare the Bid and Ask prices between the New Order form (tic) vs. the regular chart. Do both Bid prices match? Do both Ask prices match?
On my attached picture, you notice that the Order Form Bid price is 228.70 but the regular chart Bid price is 228.71 (or 1 pip higher). Similarly, the Order Form Ask price is 228.78, yet the chart Ask price is 228.76 (or 2 pips lower).
When I look at all the other pairs, it seems that sometimes either the Bid or the Ask prices match but never both. The larger the spread, the more likely there is a difference of at least 1 or 2 pips on one or both prices.
Thank you!
Pips4life
P.S.
This 1 pip Bid price difference really messed me up last night. I calculated a 61.8 Fib retracement price on a chart, then I put in a Sell Limit order for that exact price and an initial 26 pip S/L, and a 55 pip trailing S/L. I had no fixed T/P as I had hoped the market was in a total reversal and would keep going down, and I'd wake up massively in profit. (Yeah I know a 55 Trailing S/L isn't big enough for all the typical swings of a big move, but this was a comprimise to at least move me closer to B.E. for the first swing).
However, at the very least, I was pretty confident that fib level would bounce by at least 55 pips or more and my trailing S/L would trim my S/L and put me into profit. Well, the *chart* shows the price hit exactly my fib level to the very pip, and price bounced 81 pips! I should have made +26 minus ~8 spread, or approx. 18 pips with my trailing S/L. Instead, the order didn't trigger before the bounce!!!! Why?? Because of this stupid 1-pip difference between what I calculated vs. what the New Order Bid price was. The next time it came back up to that Fib level, all the "bounce" energy was gone, and of course it opened the order and blew right through it and hit my -26 S/L. At least it was a small position and a relatively small -26 pip loss, but it *should* have been a +18 pip gain!
One final comment: I like making money when I sleep, and I dislike missing gigantic moves that may happen when I sleep or am away... so I'm working on setting up more limit orders at key levels that I think the market will bounce big, or even reverse. But as I'm not always watching the market, I keep these lot sizes smaller, and for better or worse, I'm trying smaller S/L values for this type of action. Still undecided if it's worth it or not... If anyone has any ideas on managing such orders with something more intelligent that a basic trailing S/L and/or fixed T/P levels, I'd love to hear them.