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Spread/quotation issue

  • #1
  • First Post: Jun 12, 2018 5:57pm Jun 12, 2018 5:57pm
hey guys i need some help...

i have been trading with EA for 4 succesfull months. Then one night my so-called low spread ECN broker widen their spread on GBPNZD to 480 pips and blowed my 27K$... plus, execution level is not in their dailly highs or in the graphs or in bloomberg, reuters or in other brokers... so my question is that ;

a) is it my stupidity?
b) is it malovent behavior by broker?
c) can i demand any right?

thanks,
  • #2
  • Jun 13, 2018 1:30am Jun 13, 2018 1:30am
Let me guess - it happened during a low liquidity timeframe, either rollover or weekly open/close..

GBPNZD is an exotic pair and crazy spreads are no exception. Trading exotics is ALWAYS extremely risky, people just do not realize that. Quotes are mostly shown in BID pricing, while the spread could affect the ASK price. This explains the missing quote.

If a 400 pip spike already killed your 27k account you definetely had a bad money management in addition.
  • #3
  • Jun 13, 2018 6:43am Jun 13, 2018 6:43am
Either. Me nor my broker consider NZD as exptic.... i think NZD might be minor than exotic and thier notmal dially spread on GBPNZD 8 pips... and my account blowed up becasue of the robot i use which didnt coded in caseof such a hugh spread.... and picked this broker because of my robit amd they promise low or none spread.... So, do you thibk it is %100 my fault? And i cant claim any right???

Quoting Drolph
Let me guess - it happened during a low liquidity timeframe, either rollover or weekly open/close.. GBPNZD is an exotic pair and crazy spreads are no exception. Trading exotics is ALWAYS extremely risky, people just do not realize that. Quotes are mostly shown in BID pricing, while the spread could affect the ASK price. This explains the missing quote. If a 400 pip spike already killed your 27k account you definetely had a bad money management in addition.
  • #4
  • Jun 13, 2018 9:30am Jun 13, 2018 9:30am
Quoting meftun
...robot i use which didnt coded in caseof such a hugh spread.... and picked this broker because of my robit amd they promise low or none spread....

  1. 8pip (80point) spread on GBPNZD is kind of huge already. you need a new broker.
  2. there are some broker who offer floating spread around 3pips (32point), average.
  3. did you code the EA? implement MaxSpread limit.
  4. also, limit EA trading time, example don't trade 4 hour to Market weekly close, or 4 hours at the beginning of weekly open.
  5. 100% your fault? I would say yes, but don't get discourage of my opinion.
  6. can you demand your right? Yes, you can try to email them asking for explanation on such scenario, and perhaps reimbursement.

  • #5
  • Jun 13, 2018 9:58am Jun 13, 2018 9:58am
thank you ... I already implemented maxspread limit and doesnt trade when spreads are high... however, the postion was open already from previous day...


Quoting Hairi
{quote} 8pip (80point) spread on GBPNZD is kind of huge already. you need a new broker. there are some broker who offer floating spread around 3pips (32point), average. did you code the EA? implement MaxSpread limit. also, limit EA trading time, example don't trade 4 hour to Market weekly close, or 4 hours at the beginning of weekly open. 100% your fault? I would say yes, but don't get discourage of my opinion. can you demand your right? Yes, you can try to email them asking for explanation on such scenario, and perhaps reimbursement.
  • #6
  • Jun 13, 2018 7:47pm Jun 13, 2018 7:47pm
Quoting Hairi
{quote} 100% your fault? I would say yes, but don't get discourage of my opinion. can you demand your right? Yes, you can try to email them asking for explanation on such scenario, and perhaps reimbursement.
Sorry to hear this happened to you meftun but I have to agree with Hairi. Without proper money management, you left yourself exposed. Your broker did what they have the freedom to do - manipulate the spread in their favor. That's why the price move won't show up in any other platform. It was artificially induced. They will say it was from their liquidity provider but that's just a cover. I've had it happen before. The only thing you can do about it after they reject your claim is take to social media, Forex Peace Army, etc. with screenshots and proof to warn others in the community. It never hurts to try to get them to refund the money but they usually have no interest in giving you back money they deliberately and knowingly stole from you.
  • #7
  • Edited 10:11pm Jun 13, 2018 9:12pm | Edited 10:11pm
The annoying part , i am already paying commision for “low” spreads because i coded my EA to low spreads. 7$ per lot and i pay 2000$ per month aproximately...
Quoting Hambone
{quote} Sorry to hear this happened to you meftun but I have to agree with Hairi. Without proper money management, you left yourself exposed. Your broker did what they have the freedom to do - manipulate the spread in their favor. That's why the price move won't show up in any other platform. It was artificially induced. They will say it was from their liquidity provider but that's just a cover. I've had it happen before. The only thing you can do about it after they reject your claim is take to social media, Forex Peace Army, etc. with screenshots...
  • #8
  • Jun 13, 2018 11:01pm Jun 13, 2018 11:01pm
If there was generally a no event that warrant a sudden extreme wide spread ( off quote/misquote?) And the broker is regulated ( or even if not) best to file that complain the sooner than later.

Once happened to me a similar thing on GJ, ( with a bucket shop broker, 7 pip spread)....some open position that suddenly the quote was 300 pips off, andi got promptly MC and a cleared out acct in seconds. It was 7k USD 'only'.

I was luckier in that respect that traded manually and made screen shots too.
Anyway, an hour talk to the broker, some emails, and end of the day the account was restored, the fault clear, GJ never even remotely traded on that price level that day.
They blamed their LP.

480 pip just too much, both GBP and NZD pairs were behaving benign enough the past weeks, not like we had another brexit voting.

The moment the first complaints fail toward the broker I would let them know that the regulator will get contacted too. I sincerely hope you don't have 27k at an unregulated broker nowadays when there is so many to choose from.
Best of luck getting your money back!

PS. Ever considered, that especially in the case of an EA, every 10k or so you split account between different brokers. Normally most EA use 0.01 lot (or more) per 1-10k...so there isn't tech reason why not do. At least some of the broker risk could be toned lower.

PPS. There is no reason why not to mention the broker's name. A possible heads up to others?

PPPS: even the bucketshop Oanda offers less than 8 pips spread on average on GN ( yes a minor pair!) With no commission!
there is always, always another trade!!
  • #9
  • Jun 14, 2018 5:15am Jun 14, 2018 5:15am
there was no event at all... And I am going to share the broker's name if it doesnt result well but it is well-regulated and company and currently they are "working" on it so maybe we can negotiate... and about 10k; totally agree. I was doing same for a long time but I figured out if I raise to 20k i can make more money (which I actually made, 7 of 27 was may 2 weeks profit)

Quoting profitfarmer
If there was generally a no event that warrant a sudden extreme wide spread ( off quote/misquote?) And the broker is regulated ( or even if not) best to file that complain the sooner than later. Once happened to me a similar thing on GJ, ( with a bucket shop broker, 7 pip spread)....some open position that suddenly the quote was 300 pips off, andi got promptly MC and a cleared out acct in seconds. It was 7k USD 'only'. I was luckier in that respect that traded manually and made screen shots too. Anyway, an hour talk to the broker, some emails, and...
  • #10
  • Last Post: Jun 21, 2018 5:43pm Jun 21, 2018 5:43pm
Since I complained about the high spreads, the broke kept spreads for GBPNZD at 100 pips max after closings.. It doesnt go up or low but stands steady at 100... IS it normal?
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