Forex Stop Hunting - What is it?

I do wonder why everybody uses those stops?
Is it just to make sure you ain't going to lose all of your money if the market goes against you?
Or can we do other things with those stops?

Believe it. First ensure that you have enough margin to cover a 1000 pip loss. Sell EUR/USD at it present highs with a take profit of 100 pips and wait. All you need is patience.

The market usually goes against me almoat everytime, initially. I just wait and it always come back within a few hours to a few days.

I don't get one thing as far as stop hunting is concerned. Our trades are tiny drops in this market. Why should any broker hunt our tiny trades? I think it is not reasonable from their side to move market for the sake of stoping out a particular trader's position.

Yea Right

Absolutely correct and they dont.
The retail market is powered by the interbank market.
What the interbank does do in particular time zone changes eg Europes opening against Asia is that the large players will converse work out how Asia is placed and try to squeeze out the meak longs or shorts.
This happens time and time again.
So sometimes its better to wait for an hour into the new trading time zone to enter the market .

As for the brokers gunning for stops, they can only do that within range and skew the price. Thats why I never trust market makers as brokers.You have more of a chance getting stop out from them than an ECN.

i think market makers hunt stops of that direction (either long or short) which prevails in the total of their clients positions. if the shorts prevail, they will push the price up to hit stops. But at the same time they will give profit to the longs whcih are fewer. So to be safe from stop hunting one must be in the opposite position to the prevailing direction of the total positions, what do you think?

when the stop is taken out by a bank or institution's big spike, thats absolutely legal.
However when the stop is triggered by your broker, that is ugly and it's nothing but of an illusion or a trick played right in front of our eyes.
It does not happen every time, but only at critical tense moments as "news release", "indicator confluence", momentum convergence >>>
The illusion happening in front of the eyes is simple explained:
What you are seeing on your platform, whether is numbers or green / red candles going up and down, its not real. It is not what is happening on some other platforms. (some times i repeat only some times )

Whenever you got a doubt that your stop might have been hunted and you been kicked out from the market, pls go back and check multiple live charts, freely offered from websites.

To provide strong evidence make sure you have a multiple screen system and recording cameras with date and time. At least two platform on demo account + free live chart from website ex: i use daily fx net.dania very precise indeed + your Live account.

Dont call your broker to complain if a spike takes out a stop 15 pips below your position and the price immediately goes up.. NO !
You will have to simultaneously check all charts and keep notes of all values.
When it happened to me, i started to get more organized.

Check the moment the price hit your stop, is it happening on other platforms too ? Is it happening with the website live chart too ? Is it showing the same values ? (well, give it 1/2 pips ) cos of some slippage.

Now gathering more evidences, called up already the representative and sent already 60 photos and 8 short video-clips of what happened.

The price never got to that level on the netdania chart and on the smart chart and on the premium chart, and on one of the two platform i was using. i would like to post it all here, unfortunately i have been asked not do do so, until further investigation will be made.

Not all brokers are bad, but cheking is better.

"So sometimes its better to wait for an hour into the new trading time zone to enter the market"

keep those secrets to yourself

we need the silly money so we can fade it

OMG, ya gotta feel sorry for these reps sometimes!

What's this, a 'dig up the oldest thread' competition?

.........Four times, Your stupid.
.

What about 5 times?

http://theoatmeal.com/comics/misspelling

You're link was appreciated

Nice poster, nails or glue?
.

Ava trade,USDCNH
This is ava only.
http://www.forexfactory.com/attachme...7&d=1392614281

There are unscrupulous brokers to be sure. But they aren't hunting stops. Stops are hunted by large banks. Let me explain: during the most liquid times (the London-NY overlap) it takes about $50 million to move the market 1 pip. A 10 pip stop hunt thus takes $500 million . No broker like FXCM or Oanda has that kind of capital, only big banks do. Why would banks do such a thing? They do it to fill big orders from their corporate clients. They need liquidity to fill such orders so they fade the obvious places where stops are - around round numbers, just above/below recent swing highs/lows etc. In other words, stops are hunted as part of routine business.

place your entry where you think your SL should be.

Good morning everyone,
I am not sure as to why the O.P. would create a thread as such, but the sad reality is that before you can even stop out, you should clearly know the market conditions in which you are trading in. In the example given by the O.P. he had a stop loss of about 30 pips, and one is assume that they are in a range. Simply placing your SL a few pips under the last known low (double bottom in this case) makes you a high risk target to be "stop hunted". Yet, think about that move which came prior to your sl being hit.
1) The broker doesn't have the power under NORMAL market conditions to spike the currency some 30 pips from your original price to attack your SL
2) Even if the broker is trading against you, you allowed the currency to run against you by 30 pips in the first place. (As you ignored the most simplest rules in forex which is the power of the engulf on the smaller tf.

Stop hunting to me is simply normal traders deflecting about a trade which was set-up to fail since the offset. Althought it is easy to judge someone or something AFTER the FACT, the reality is placing your SL should be a very specific task. Why in the first place would you place your sl so near to where everyone would be looking to getting out or in at? Why if you stop out, would you not follow the direction of the price action which caused to you to stop out in the first place? Why wouldn't you have back up orders set forth to counter the STOP HUNT move to begin with?

Stop hunting does exist, but not on the scale as people make it appear to be. Can you imagine that people allow themselves to go in red as much as 500 pips, at which point their sl is hit, and then the price reverses, only later for them to say they have been stop hunted. What about the traders who are "Stopped hunted" AND in the near future they don't use stop loss, and that no stop loss trades ends up turning into a margin call.