What is this chart spike?

1. volume on this 1 hour candle was 240
2. closing price on this candle was 47.56
3. opening price on the next candle was 72.39

So from the last tick on 21:00 candle to the first tick on the 22:00 candle the price moved 2483 PIPS! One tick... 2483 PIPS. The entire range on the very next candle was only 64 PIPS. So... if this was valid then in one tick there was a 2833 pip difference and there was no retrace... no volatility to speak of in the ticks that immediately followed on the next candle.

This was not movement from lack of liquidity.

I've been at this for about 4 years and am hoping to make trading FX my primary source of income. So i would like to know how this happens. IBFX doesn't have a dealing desk... right? So... one of their markets, a bank or institution, is the source of the invalid tick. Or was IBFX computers? I don't know. I'm hoping one of you folks can tell me or direct me to what i might read on this.

i am sure they have a dealing desk... they probably just call it an "order routing desk" or something like that.

these are the same people that brought us the "introducing agent" to try to get arround Ib's having to get registered

but hey they are the best Forex broker in salt lake city 5 years running!

Hey, one time quite a while back the same kinda thing happened to me @ a retailshop (don't wanna say who)
and I was on the right side luckily and banked several hundred pips on a CAD pair.
It took them 3 days to correct the problem. The money sat there and for the first 2 days,
I was afraid to do anything. Then, I decided to have some fun. That's when things got ugly.
Instead of doing 1 or 2 lots in that account, as was my norm, I was doing 10 at a time
using their money and scalping 10 pips or so, never holding more that a few minutes.
They caught on and stuck it in my ass for about 20 pips, directly on top of a spike,
and the fun was over. Position liquidated. Balance brought back to normal.
"...f*ck me, well f*ck you too !..." was how they handled it and it's what happens
when you try to give 'em a dose of their own medicine. They'll spit it back at you.

Again, this was some time ago. My trading ethics were rather shitty back then.
I'm not saying what I did was right, because actually, it could have turned out horrible
if say I'd lost 2 or 3 times the original amount in the account, using "borrowed" money.
Nowadays, I'd never dream of doing something like that. But at the time, it seemed like
a good way to grab a few bucks and it was better than robbing a gas station.

In all fairness to licensed professional forex thieves, it's one thing to hunt stops,
make up prices out of thin air and or play funny business with your account PnL.
That's normal and it's just the usual way they do business. What would one expect ?
It's totally another to erroneously leave thousands of dollars in a trader's retail account
for the better part of a week and simply assume all's well until they get around to fix it.
We're all human. What would THEY expect ? honesty ? integrity ? get real !

Moral of the story: You can't F*ck a Muth*erf*cker. Simple as that.

Hi Gandolf,

IBFX doesn't have a dealing desk but like ALL MT4 white label brokers their clearing house dose. This allows them to get away with the marketing crap of advertising "No dealing desk". Until the NFA steps in and purposes some better rules on how MT4 brokers do business with their clients your going to continue to see spikes, re quotes, spread widening etc..

IMO IBFX wants to provide their clients with the best service they possibly can , but at the same time can't help the clearing houses getting in their way.

Forex is still relatively new to OTC trades and small investors like many of us, so the more you stand up and bitch about it, the more people are aware of it, changes might take place (optimistically speaking...LOL). Hopefully the next generation of traders wont even know what a dealing desk is, but looking at who this business benefits I highly doubt it.


Regards,

Agentfx

I didn't have a trade open in that pair but I had asked for a considerable amount of money to be withdrawn from my account and changed to NZD at that time. I've yet to check the bank it was going to to see if it has arrived (it was taken out of my trading account) and to see what exchange rate was applied. I feel a little sick .... and a tad scared to check the bank account ...

what ever bank they use will be the ones offering the rate and bad ticks shouldnt be worried about anyways.

Another spike! WOW IBFX spike record? I don't remember ever seeing this many spikes in one month from them. I think the most I remember is 2. I know they are trying hard to keep their customers happy at the same time I am just curious if anyone had trades open got stooped out and IBFX gave your money back, such as the case here. There have been times were there were no spikes with other brokers and IBFX considered their spike legit. They also came out with new swap rates this month due to "recent volatile activity in the worldwide credit markets ". I just hope their is no trend developing here LOL. I guess I will be watching their DCIO reports http://www.cftc.gov/marketreports/fi...fcms/index.htm a little closer.

A spike filter of some sort could have been implemented some time ago.
Especially one that would catch a 500 pip price error. It has not happened
and one can only consider the possibilities, only one of which may be
this is a way of "balancing the books" when they get lop-sided.

In other words when alot of AUD has moved in a short period,
like say yards and yards of it over a several hundred pip price span
in only a few hours, the order book can get a bit heavy on one side or the other.

A big spike like this - opposite the direction of the trend and guaranteed
to take out EVERYBODY's stop within 500 pips of the current market,
immediately fills the register at the broker's shop with lots of dollars.

Now, temporary as this may be, an hour or two or even a few hours, that's big money $$$
now made available that wasn't on the broker's books before the spike.
After the "mistakes" and "errors" are corrected, everything is put back in place.

and:

"WE APPOLOGIZE FOR ANY INCONVEINENCE THIS MAY HAVE CAUSED"

proper response should be:
"Hey ! F*ck YOU, Stop messing with my money or I'll do business elsewhere.
Hold on a sec, I gotta take this call. It's the NFA returning my call.."

If 20% of the client base reacted this way and just closed out and left, they'd get the message.
The other 80% will still get it rammed up the ass, business as usual, but they'd get the message anyway.


BTW: When and if the regulators (CFTC/NFA) do call or investigate, the broker's response to them is:

"Hey! F*ck you ! Stop messing with our business model, or we'll do it from offshore or overseas !"
Here's a nice pile of hush money. We admit no wrongdoing. Now, leave us alone - we're busy.

I took a quick look at the history data for the latest spike on IBXF AUDUSD, I don't have tick data, but 1M data, and this is what it shows:
Volume was not really a problem I wonder how they explained this one? I had actually closed my position about 1/2 hour earlier as it was starting to reverse already (on my charts) Still picked up >260pip, but that spike would have hit my Sl and then some!! LAtely the market has been in turmoil, but this is even excessive!!

Rusty

Volume may or may not have an effect on chart data. If someone inside their network of liquidity providers enters a poor price quote and it gets passed down to them, you can see a huge spike like that.

This volume reading is just Tickvolume (numer of pricechanges in the bar), not actual traded volume.

Another massive spike on AUDNZD... at least on demo account. At 5:00am low = 1.1008 high = 1.1988

This is getting very embarrassing for them. They need to drop that unreliable data provider.

Is it really a bad price provider or their way of "not losing " when all trades stacked on right side of trend? I bailed and have been happy ever since.