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Stop loss issue

  • #1
  • First Post: Jan 10, 2010 3:04am Jan 10, 2010 3:04am
Guys I need some advice.
I am in Forex for about 3 months and i use MT4. I placed a trade on friday and put Stop loss and went to work. My Stop Loss triggered but it did not stop my loss and i lost significant amount of money due to NFP news on friday. this has never happened to me before. The Stop loss block is red in color and i am not sure why it did not stop my loss. My broker is closed right now , you think he will refund me with the amount lost. I need to know if this has happened to any one before.
Please advise
  • #2
  • Jan 10, 2010 3:15am Jan 10, 2010 3:15am
Could you post an excerpt from your Trade History and name the broke you're dealing with? When your stop for a short position is at 1.4320 and price is currently trading at 1.4310 it can slip your stoploss when the price just skips the 1.4320 level but you should get filled at the next possible price 4325 maybe. Is your position still open? How much did it went past your SL?
  • #3
  • Jan 10, 2010 3:15am Jan 10, 2010 3:15am
Slippage maybe?
  • #4
  • Jan 10, 2010 3:30am Jan 10, 2010 3:30am
Normally brokers hunt stops in very important news announcements & maybe it might be the slippage. But i dont think so you can recover your money you lost from your broker.
By the way whose your broker???
  • #5
  • Jan 10, 2010 3:30am Jan 10, 2010 3:30am
yes i think the slippage makes sense to me, as due to the NFP new the USDJPY went down 80 pips in a matter of seconds but it did not fill up. so who is responsible in this case, me or broker ?
Attached Image (click to enlarge)
Click to Enlarge Name: sl.jpg Size: 150 KB
  • #6
  • Jan 10, 2010 3:33am Jan 10, 2010 3:33am
Quoting Honored
yes i think the slippage makes sense to me, as due to the NFP new the USDJPY went down 80 pips in a matter of seconds but it did not fill up. so who is responsible in this case, me or broker ?
Well, in general, you. Stop losses aren't guaranteed in most cases. But it doesn't hurt to ask the broker if they can fix it.

Think of it this way: You were long. In order to close your trade you had to sell. There was already a ton of sell order in the market, forcing it down. Market orders usually come before stop orders, so lack of liquidity can easily cost you a stop loss.

Looking at the chart tho, I'd be seriously questioning their stop loss policy. There's plenty of time after the spike down to get filled on a stop, price traded right at that level afterwards. So that begs the question: Exactly what is their S/L policy?!
  • #7
  • Jan 10, 2010 3:37am Jan 10, 2010 3:37am
Quoting Honored
yes i think the slippage makes sense to me, as due to the NFP new the USDJPY went down 80 pips in a matter of seconds but it did not fill up. so who is responsible in this case, me or broker ?
Man seems a big loss...Anyways contact with your broker about this issue...
  • #8
  • Jan 10, 2010 4:02am Jan 10, 2010 4:02am
Well, there website says :

 

  1. No slippage during the hectic Market No matter what the figures were, you will always get your orders at the prices you previously specified.





    So, hopefully, if my situation was slippage, then i should be getting my money back.

  • #9
  • Jan 10, 2010 4:05am Jan 10, 2010 4:05am
That sounds veeeery very fishy.
  • #10
  • Jan 10, 2010 5:26am Jan 10, 2010 5:26am
Quoting Honored
Well, there website says :

 

  1. No slippage during the hectic Market No matter what the figures were, you will always get your orders at the prices you previously specified.





    So, hopefully, if my situation was slippage, then i should be getting my money back.


Im sure , your broker will never admit this thing...
  • #11
  • Edited 12:18pm Jan 10, 2010 12:11pm | Edited 12:18pm
In their FAQ's http://www.afb.com.kw/faq the question is:

"Have you guaranteed fills for pending orders, profit or loss orders"? Answer: "Yes your order will be filled at the price you indicated before except when there is a market open after a weekend,a holiday or ususal market breaks . then your orders will be filled at the opening price ."

Also they say here: http://afb.com.kw/node/713 "No slippage during the hectic market" "No matter what figures were, you will always get your orders at the prices you previously specified."

So if, which I doubt they will, live up to their website statements then you have a case and reason to have your account adjusted. Good luck, you'll probably need it.
  • #12
  • Jan 10, 2010 1:06pm Jan 10, 2010 1:06pm
Go for an ECN broker with MT4. Here's a list:

ATC Brokers

Dukascopy

MB Trading

PFG Best

Probably in that order.

I would rather pay a bit more in commission than be robbed.
  • #13
  • Jan 10, 2010 1:11pm Jan 10, 2010 1:11pm
I'm sorry, but I really must address the elephant in the room, because clearly no one else has ...

... why in the hell would you enter into a trade on a Friday before the Non-Farm Payroll is released?

And if you entered after the news release, then you should have known that violent volatility on NFP Friday is pretty much guaranteed ... trading with tight stops on this day is far dumber and riskier than setting no stops at all. You can't try to trade the NFP and then not have enough margin/cushion to survive the volatility.

No offense, but it seems to me like your trade strategies are what need some serious work.

On a separate note, situations like this is also why you should only go with major, reputable brokers and never small, shady dealing desks that no one else has even heard of.
  • #14
  • Jan 10, 2010 1:29pm Jan 10, 2010 1:29pm
You had one long position at 0725, well before the news and your SL was hit. This isn't your brokers fault.

You also had a long position placed right before the news. Again, this isn't your brokers fault, your stop was hit. The market then turned around.

It's not uncommon for the market to suddenly turn like that especially during news events.

Slippage can occur in a fast moving market.
  • #15
  • Jan 10, 2010 1:50pm Jan 10, 2010 1:50pm
Quoting kibescorp
I'm sorry, but I really must address the elephant in the room, because clearly no one else has ...

... why in the hell would you enter into a trade on a Friday before the Non-Farm Payroll is released?

And if you entered after the news release, then you should have known that violent volatility on NFP Friday is pretty much guaranteed ... trading with tight stops on this day is far dumber and riskier than setting no stops at all. You can't try to trade the NFP and then not have enough margin/cushion to survive the volatility.

No offense,...

All true, excessive slippage, even 70 pips, can happen during nfp. But still, i have only looked at the usd/jpy trade, and that fill is extraordinarily bad, pretty much at the worst possible point.

For comparison, i have attached a chart from MB Trading. The red dots are bid-updates, where a stop could have been executed. A better firm would have saved some 50 pips in slippage.

I doubt there will be a refund tho, its just the risk of trading NFP, and that naturally can get horribly expensive, if done in this fashion.
Attached Image (click to enlarge)
Click to Enlarge Name: JPY-NFP.PNG Size: 29 KB
  • #16
  • Jan 10, 2010 3:00pm Jan 10, 2010 3:00pm
So, the moral of this story is - to not trade during major news releases unless you are will to except it's negative and/or positive outcomes.
  • #17
  • Jan 10, 2010 3:50pm Jan 10, 2010 3:50pm
It seems like Groundhog Day here. Every month somebody gets "robbed" during the NFP news. My prediction - same thing next month.
  • #18
  • Jan 11, 2010 10:02pm Jan 11, 2010 10:02pm
Thanks for the input guys. I talked to the dealing desk and they sumitted a ticket. The manager then had to take a decision and they refunded my money. They said this kind of situation is very unique and sorry for any inconvience.
Thanks
  • #19
  • Last Post: Edited 12:58am Jan 12, 2010 12:26am | Edited 12:58am
Now thats impressive, they lived up to their websites statements and actually made things right but you still got lucky in the end.
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