Why would an ECN-broker be stophunting? | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Broker Challenge "NDD/STP" vs. True "ECN" and "Mkt Mkr" broker talk 46 replies

Which one is better: an ECN broker or OANDA? 9 replies

Difference between ECN and retail broker? 60 replies

Cheapest ECN Comissions - Vantage FX ECN 10 replies

How much would you pay for an MT4 ECN bridge? 3 replies

Attachments: Why would an ECN-broker be stophunting?
Exit Attachments

Why would an ECN-broker be stophunting?

  • #21
  • Sep 1, 2011 10:11am Sep 1, 2011 10:11am
Quoting shoplogix
" the spike has nothing to do with stop hunting. Is just a normal spike caused by lack of liquidity in that pair ............."

this is a retail metality.

the spike is a reset, to clear the board, run the long or short stops.
blow you out.

the marketmaker knows your equity , your % margin used and can see your stops

once they accumulate in the market they run them

they also run a dashboard program by the minute and see it all.
where does a retail trader put his stops.
10 to 25 pips away.

you don't think these guys...
Well this could be true if we are talking about a market maker with bad practise a bucket shop. But for an "honest" retail market maker or any market maker handling the b book does not require hunting of stop. You just need a good desk to handle it and it usually the best way to handle is to do nothing.
As anyhow majority of trader will loose. Also an "honest" market maker will have client divided in A book ( i cover the position because this trader is making money) and the B book ( i do not cover as he will loose).
For me as long as the price feed is not manipulated ( as you are suggesting) market making is a good thing. Also ALL the tier 1 bank are market maker.
because at the end of the day they provide liquidity.
Here the point is different , the fact that you say that is no lack of liquidity ever for any for me is not true at all.
and is very simple if you running an stp/ecn and and you have a BOOK then
in the some order present in the book ( limit or stop) are far far away ( AND YOU CAN SEE THEM) it could happen ( and there are various reason for this) that suddendly all the bid and ask offer are removed from the book and the far limit order become the first bid and first ask. FROM THIS THE SPIKE on price. then you will see that the prices almost instantly come back to normal , because a new bid or ask arrive on the market which become again first bid or first ask.
This is a fact! and you can see this many time if you watch any ecn/stpfeed.
what i am not aware of what happens to your stop if you get the spike .
Let ' say if you have a stop -100 pip from current price you get the spike ( sometimes the price is -300 pips) . Do you get stopped out or not?
If somebody has any direct experience please share. Thanks
  • #22
  • Sep 1, 2011 10:15am Sep 1, 2011 10:15am
Quoting grimReaper
That was my first impression, but I'm still unsure about that. For that to be true, that means practically all of the buyers removed their bids, and that doesn't sound like a multi-bank ECN. Even when trading shuts down at 17:00est, the bids that were placed before shutdown automatically become live once trading resumes.
then why mbt is paying for adding liquidity to their ecn?
  • #23
  • Sep 1, 2011 10:25am Sep 1, 2011 10:25am
Quoting grimReaper
That was my first impression, but I'm still unsure about that. For that to be true, that means practically all of the buyers removed their bids, and that doesn't sound like a multi-bank ECN. Even when trading shuts down at 17:00est, the bids that were placed before shutdown automatically become live once trading resumes.
this is for sure . the bid or ask are still present in the book . they were not removed. Again i am pretty sure it is not stop hunting. Not sure at all what will happen with your stop and this is the reason i prefer to work with market maker (honest they always give liquidity). Anybody from the thousand of mbt or other ecn -broker trader can give us light?
  • #24
  • Sep 1, 2011 10:39am Sep 1, 2011 10:39am
Quoting grimReaper
That was my first impression, but I'm still unsure about that. For that to be true, that means practically all of the buyers removed their bids, and that doesn't sound like a multi-bank ECN. Even when trading shuts down at 17:00est, the bids that were placed before shutdown automatically become live once trading resumes.
Hi-

I can see from your screenshot, you have a Demo account. If you pull up the same chart on the MT4 Live system, those spikes are not there. Also, those spikes were three years ago. I've been trading with them for five years. At one point, they had an issue on certain pairs that when they shut down for maintenance/rollover at 5 pm EST, there would be bad data spikes. If always happened right on the 16:59 EST bar, execution was turned off so it never effected any orders. Looks like me like the Demo account data never got cleaned up, but either way, this was a discussion back in 2008 and it never caused anyone to get stopped out. It was purely bad data from their quote server behaving oddly.
FXChant Singing the World of Forex
  • #25
  • Sep 1, 2011 11:21am Sep 1, 2011 11:21am
Quoting fxchant
Hi-

I can see from your screenshot, you have a Demo account. If you pull up the same chart on the MT4 Live system, those spikes are not there. Also, those spikes were three years ago. I've been trading with them for five years. At one point, they had an issue on certain pairs that when they shut down for maintenance/rollover at 5 pm EST, there would be bad data spikes. If always happened right on the 16:59 EST bar, execution was turned off so it never effected any orders. Looks like me like the Demo account data never got cleaned up, but either...
I still see it when I switch to my live account. I'll contact support.
  • #26
  • Sep 11, 2011 4:15pm Sep 11, 2011 4:15pm
Quote
Joni | 22:02
Hi, how may I help you *****| ?

*****| 22:02
Hello, I am a client of yours. I am getting again worried on some stuff being written in foruns. I would like you to comment on this: http://www.forexfactory.com/showthread.php?t=312553

*****| | 22:05
Are you there?

Joni | 22:05
I can assure you FinFX doesn't manipulate the prices. We give them as they arrive to us from the banks. I can't say why there is a spike. It could be the other broker is manipulating their feed, using a filter that takes off the spikes.

*****| | 22:06
All...

Reply from FinFX. Will post here e-mail reply.
  • #27
  • Sep 11, 2011 4:18pm Sep 11, 2011 4:18pm
Other thing..Integral is liquidity provider of ODL Secutiries and NordFX for example. Are you able to check there is the same spyke was seen?

Thanks
  • #28
  • Sep 13, 2011 5:49am Sep 13, 2011 5:49am
Quoting Skovjuul
Hi,

I recently opened an ECN-account with FinFX and as I was studying todays charts I came accross what looks like as stophunting-spike (see attached picture, FinFX(MT4, GMT+7) is an hour ahead of Plus500(own software, GMT+6)).

Why would an ECN-broker be stophunting like this? Or is it something entirely different that is going on?
Hi, it's not an ECN broker. This is marketing only. Don't trust anybody in Forex.
  • #29
  • Sep 13, 2011 9:34am Sep 13, 2011 9:34am
Genius except if there is nobody to trust there is no reason to trade.
  • #30
  • Nov 17, 2011 3:55am Nov 17, 2011 3:55am
Most brokers are not around for us to make money and they other small percent are true ECNs. The larger percent of so called ECNs and Market Makers want the trader to loose and most the time they do, so that is why you see so many of them, if they are truly stop hunting then it's just a small part of what they are really doing, expect freezes and requotes and slippage.


forex brokers
  • #31
  • Nov 17, 2011 9:09am Nov 17, 2011 9:09am
Quoting Skovjuul
Great, 2 weeks of research and I still end up with a bucketshop... just wow!

So, are there any kind of list or index of real ECN-brokers?
This way I can visit their website and see if they have an account-size, commission- and spred-size and software that fits me.

I thought I had done my homework, but clearly not.

Please help.
Find a broker that is in the UK or US. Anyone outside can say whatever they want to get your money. Best option is MBT UK.
  • #32
  • Nov 17, 2011 10:19am Nov 17, 2011 10:19am
The only ECN is EBS.

The rest just are STP's and market makers.
  • #33
  • Nov 23, 2011 4:47am Nov 23, 2011 4:47am
Quoting Skovjuul
Hi,

I recently opened an ECN-account with FinFX and as I was studying todays charts I came accross what looks like as stophunting-spike (see attached picture, FinFX(MT4, GMT+7) is an hour ahead of Plus500(own software, GMT+6)).

Its on the GBP/USD 5 min chart.

I cross-checked with a demo account I have with Plus500 and also against a free online chart, both had no spikes.

Why would an ECN-broker be stophunting like this? Or is it something entirely different that is going on?

Please help me understand.

Kind regards.

Broker such plus500 which are market makers, can "play" with the chart as they wish and therefore you don't see the spikes. An ECN broker shows you the real prices of the market, including the unwanted spikes. A chart free of spike is suspicious to me, since everybody know that it is impossible that the market will not have any spikes at all. I suggest that you open a demo account in real ECN brokers such as Sunbirdfx or etoro and you will get the idea of how the markets' charts should be.

  • #34
  • Last Post: Nov 23, 2011 12:50pm Nov 23, 2011 12:50pm
Try FxPro ECN using their cTrader platform, had no problems at all so far.
0 traders viewing now