"On September 15, 2008, there were some price spikes on all NZD currency pairs that originated from one of the institutions that we contract with for pricing and trade off-set.
The prices provided flowed correctly through our system. As indicated in our risk disclosure and customer agreements, one of the risks associated with trading Forex is that there is no central exchange. As in this case, this can result in prices that are not in line with prices being presented from other sources. "
So be warned, they are saying they don't have to make good on any trades you had stopped out due to this sort of thing.
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Wow. Thats scary. Running a forex broker is like getting a license to steal....
So be warned, they are saying they don't have to make good on any trades you had stopped out due to this sort of thing.
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You would think though that they would filter these spikes from the feed. I mean such a spike can be caused by one bank or trader accepting a fill there for some reason, or by poor data, but that should not affect the whole system surely.
"On September 15, 2008, there were some price spikes on all NZD currency pairs that originated from one of the institutions that we contract with for pricing and trade off-set.
The prices provided flowed correctly through our system. As indicated in our risk disclosure and customer agreements, one of the risks associated with trading Forex is that there is no central exchange. As in this case, this can result in prices that are not in line with prices being presented from other sources. "
So be warned, they are saying they don't have to make good on any trades you had stopped out due to this sort of thing.
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Price spikes are an unfortunate part of being a retail trader in the FOREX market. When liquidity gets low and your broker has a poor or limited stream of prices from their liquidity provider (that would be the "institutions we contract for pricing"), prices can jump all over the place if that liquidity provider is filling an order from an investor at a wild price.
Wow. Thats scary. Running a forex broker is like getting a license to steal....
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Why the price was that far away was a mistake by the investor(probably a hedge fund or other institution inputting an incorrect price) obviously, but your broker isn't stealing your money by taking your loss. If the price spikes like that and they refund you, they are doing it solely out of their pocket... they didn't make anything off that spike--their liquidity provider just provided THEM with bad data, which then trickled down to you.
well spikes like this happen all the time in hindsight from corrupt data feeds.... i've never seen one this bad in real trading....
why not open charts from other MT4 brokers and compare? if they all spike, it's legit. if not, you have a valid complaint and they will likely give you your money back.
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IFX had the price spike to 1.3249 on 15.09.08. Their quoted high for the day was 1.3249 and the low was 0.6496. The chart on their platform also shows this spike.
They also had a price spike to 1.3370 on 18.09.08 with low for the day at 0.6632.
IFX had the price spike to 1.3249 on 15.09.08. Their quoted high for the day was 1.3249 and the low was 0.6496. The chart on their platform also shows this spike.
They also had a price spike to 1.3370 on 18.09.08 with low for the day at 0.6632.
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Patience,
did you get taken out on that spike, did that spike affect your trading?
Same pairs... NZDJPY as well, a tiny 2500 pips! Luckily I was on the right side of it and cleaned up. They will reverse it of course. I'm waiting for the day that I cop a huge loss due to this type of spike and they refuse to reverse it, pointing me to the statement that this is one of the risks of trading fx.
Joined Jun 2008
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Status: Resistance is futile
|349 Posts
Hi Frank, I don't buy the fact that liquidity in the market caused this spike, although it dose happen. This is probably just another case of bad data like a few days ago. I was just merely pointing out the fact that it happened on their server again with the same pair. I'm sure if you called them they will give you a refund of your account. Also I don't demo trade so i don't have 50 million demo accounts on my computer but you can check around with other brokers platforms and compare charts.
I've already had to bitch about it with IBFX twice about their crazy spikes .... I'm still waiting for them to refund 4 of my positions that would had been in profit if not for the false spike ....
