Need help, all opinions matter

Hello guys, I am having a problem I never encountered before. Now normally I dont trade over the weekends as you never know what will happen. This weekend however I saw high potential to the upside and decided to be long. I had a take profit level but the market gapped up 155 points above my tp. Still...my broker closed the position at the take profit level when market level was 150points higher at market open.

Is this fair to me? What should I do?
This is the conversation I just had with a representative of my broker...

Chat InformationThank you for contacting us. The next available agent will be right with you.
Chat InformationYou are now chatting with 'Client Services 60'
Client Services 60: Hello. My name is xxxx. How can I help?
me: I have a very confusing problem.
me: I had 2 orders open over the weekend with a predetermined stop loss and take profit
me: now if the market gapped against me and beyond my stop loss, the position usually closes where the market opens
me: correct?
Client Services 60: Yes, if the market gaps past the stop loss then the trade is closed at the current market price.
me: so then why is it that this weekend my take profit was at 118.30 on the Eur/Jpy but the market opened at 119.85 that my position was closed at take profit level...shouldnt it have been closed where the market opened..same as if you had a stop loss?
Client Services 60: A TP is different than a SL.
Client Services 60: A TP is a limit order. Limit orders are closed at the limit price. Stop orders are closed at the current market price.
me: is there an interbank link you can connect me to so that I see this written? Because I know that in general, any position that is beyond the stop loss or take profit level is closed at the market level
Client Services 60: You are correct in thinking that other markets are different. However, this is the way it is in the Forex market. There isn't a link that specifies this exact scenario.
me: it seems to me like something is not correct here. Thank you for this coversation. I will keep it in my records and do some research on the topic, including federal rules to see whether I was treated correctly or not.
Client Services 60: My pleasure, thank you for contacting IBFX.

Hi,

I think that is dishonest

They want you to bear the extra loss if it gaps past your Stop Loss, yet if it gaps past your TP then they keep the extra profit, that is a not a fair go.

I didn't realize that was the situation with Forex. I thought TP and SLs were handled similarly during times of high volatility and big gaps. I suspected that they were fiddling with the price levels to their advantage but this is just completely unreasonable.

Sounds to me the brokers are playing "Heads I win, tails you lose". As if they weren't making enough money from retail traders already. Isn't it enough for them to widen spreads at their whim?

Good luck in your efforts at resolution.

I would definitely let them know that you started a thread on this at FF, but haven't disclosed the name yet. As you debate the ethics of their move. imo.

name not disclosed???

"Client Services 60: My pleasure, thank you for contacting IBFX."

If what you say isn true and they allow the market to Gap your SL and fill it at market, then doing what they did on the TP is unfair and shows you there a bucket shop.

I would confront them on it.

ha ha, yeah didnt see tht, guess woulda had more leverage, but should let em know anyways right?

Sorry for your situation.
By the way, I wanted to open an IBFX account. Thanks mate!

That is total BS, but I'm not sure you'll be able to get your money I believe is rightfully yours. IBFX is the KING of bucketshops (regardless of what their pretty website says), and they've been doing this longer than anybody. Trust me, you're not the first to have this happen there.

There will now probably be people posting here talking about how great IBFX is, blah blah blah. That's fine, but will you get your account made whole?? Probably not I'm afraid, but I commend you for not taking it lying down (I wouldn't either).

I suggest asking them for a credit to your account for the specific amount and give your reasons. Send it to them and see what happens. At least you'll have a written record. Let them know it's not ok with you, post on forums like you're doing, maybe even file a complaint with the NFA, but honestly, it still probably won't get you any money. But just on principle, I'd probably want to do something along those lines myself...

Best wishes...

Sympathies.

Ideas to help you sort through this:

....A SL is a market order: "When you place a market order, you can't control the price at which your order will be filled." (source)
A TP is a limit order: " To avoid buying or selling a stock at a price higher or lower than you wanted, you need to place a limit order rather than a market order. A limit order is an order to buy or sell a security at a specific price. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. " (ibid)
.....Yeah, higher. Maybe it's an option for them.

....Since, technically, the market is open 24/7 and there is no real gap, a lot of broke rs just treat it as a gap, then your order was filled when the broke r reopened from a price that happened over the weekend. This doesn't sound as likely, though.
I guess broke rs treat the market as closed when they don't offer trades over the weekend, rendering this reason impossible.
....If your TP were a market order, then you'd be right.

....." Remember that your limit order may never be executed because the market price may quickly surpass your limit before your order can be filled. " (ibid)
Then, since your TP limit order did execute, the going price may have dropped to your price after the broke r opened its business to the market; whether this is true would depend on your TP's time stamp, I suppose.

Best wishes and good luck on this.

that is perfectly reasonable when your trading of a week do you ring your broker because your take profit was hit but the market continued higher? no you dont. so whats the problem your tp was hit the market went higher its what happens.

damien

His take profit was not "hit"; that price never existed in the market at all; there was instead a 268 pip gap between closing price Friday and opening price Sunday. When was the market ever at the price his order was executed at during that time? Never. That's the whole point...

That is correct. The Eur/Jpy closed on Friday for IBFX at 116.33. I had open position around 116.60 with take profit at 118.30 (as that was the high of the range established on Friday). IBFX opened at 119.85 yesterday for this pair. When was price ever 118.30 that my tp was hit? If it was a sell...i would have taken a loss at 119.85.....not my set stop loss.

Thank you for all the replies all, this is just another reminder to myself that I need to get rid of this bucket shop and switch over to a real broker. If you do have an account at a bucket shop...make sure this does not happen to you. If you have intent to have position over the weekend...have no sl or tp as they are pointless.

Another IBFX satisfied customer....

I think alot of the experienced fellows on this board have recommended against using croslands house of bucketshop tricks.

My #1 rule of fx thumb, dont use US brokers.

TP parameter's due to IBFX's Virtual Dealer Plug-in?

http://www.forexfactory.com/showthre...t=64440&page=7

See post# 93

Why no US brokers?