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Broker shifting the offer price of the pair

  • #1
  • First Post: Sep 20, 2013 2:44pm Sep 20, 2013 2:44pm
Has anyone experienced where when the market closes, the broker has pushed the offer price down for 20 pips or so. Eg. Market says AUD is at 0.9380, they quoted 0.9360 and kept having whipsaws up and down on a short term graph of 10 pip movements.

Now offer price = market common price and should not have a spread, I find this weird.


If anyone has experienced this I would appreciate your input.
  • #2
  • Sep 21, 2013 7:52am Sep 21, 2013 7:52am
Quoting cloudstr1f3r
Has anyone experienced where when the market closes, the broker has pushed the offer price down for 20 pips or so. Eg. Market says AUD is at 0.9380, they quoted 0.9360 and kept having whipsaws up and down on a short term graph of 10 pip movements. Now offer price = market common price and should not have a spread, I find this weird. If anyone has experienced this I would appreciate your input.
I have difficulty understanding what you are talking about.
When the market is closed it is closed, you cannot trade, so it does not matter what prices the broker quotes.
Why would anybody be concerned if their broker has a lower offer price? That is good for those wishing to open a long position.
Please explain what "market common price" is. I have never heard of this term
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  • #3
  • Sep 21, 2013 8:35am Sep 21, 2013 8:35am
Quoting Gumrai
{quote} I have difficulty understanding what you are talking about. When the market is closed it is closed, you cannot trade, so it does not matter what prices the broker quotes. Why would anybody be concerned if their broker has a lower offer price? That is good for those wishing to open a long position. Please explain what "market common price" is. I have never heard of this term

Eg. Prices on Bloomberg. It does matter, because I have observed a broker who moves the offer (eg. the sell) price lower and that would trigger stops before the market closes, this happens before the market closes on Friday, and also happens everyday when swaps are calculated. Prices for the sell price, arguably the market price deviates a lot from other brokers/banks and bloomberg.
  • #4
  • Sep 21, 2013 3:59pm Sep 21, 2013 3:59pm
Quoting cloudstr1f3r
{quote} Eg. Prices on Bloomberg. It does matter, because I have observed a broker who moves the offer (eg. the sell) price lower and that would trigger stops before the market closes, this happens before the market closes on Friday, and also happens everyday when swaps are calculated. Prices for the sell price, arguably the market price deviates a lot from other brokers/banks and bloomberg.
Now I see why I found your post confusing.
The Offer is not the sell price as most people see it, it is the same as the Ask, the price that you, the trader will be able to buy at.
It's a long time since I last watched Bloomberg, but their prices were always delayed by 15 minutes. If that is still the case, then their prices can not be reliably compared to live market prices.

It is true that some brokers' widen their spread at certain times, and some excessively.
It is good that you have observed a broker that has done this, as it means that you can avoid trading with them
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  • #5
  • Sep 22, 2013 5:09am Sep 22, 2013 5:09am
Quoting Gumrai
{quote} Now I see why I found your post confusing. The Offer is not the sell price as most people see it, it is the same as the Ask, the price that you, the trader will be able to buy at. It's a long time since I last watched Bloomberg, but their prices were always delayed by 15 minutes. If that is still the case, then their prices can not be reliably compared to live market prices. It is true that some brokers' widen their spread at certain times, and some excessively. It is good that you have observed a broker that has done this, as it means that...

As of bloomberg, I mean the professional platform on bloomberg, not the website of it.
  • #6
  • Sep 22, 2013 7:38am Sep 22, 2013 7:38am
Quoting Gumrai
{quote} Now I see why I found your post confusing. The Offer is not the sell price as most people see it, it is the same as the Ask, the price that you, the trader will be able to buy at. It's a long time since I last watched Bloomberg, but their prices were always delayed by 15 minutes. If that is still the case, then their prices can not be reliably compared to live market prices. It is true that some brokers' widen their spread at certain times, and some excessively. It is good that you have observed a broker that has done this, as it means that...


The whole point here is that, the spread is between market price and the marked-up bid, it's not between the a mark-ed down market price with also a marked up bid price, it doesn't work that way. A broker has no right to present something which is absolutely wrong and if price from them represent nothing from the markets then there is a fundamental regulatory issue. Because they have no right to quote false prices to their own advantage. Do you see what I mean mate? Because if sell price and buy price are both significantly different, then they are not telling the trader anything of the market, which is wrong and unacceptable.
  • #7
  • Sep 22, 2013 8:07am Sep 22, 2013 8:07am
Quoting cloudstr1f3r
{quote} The whole point here is that, the spread is between market price and the marked-up bid
What do you mean by "marked-up bid"
Spread is difference between Ask and Bid. I have no idea what you mean by market price because there are only 3 prices in trading, they are ask, mid and bid.
Please Do Not PM Me With Coding Enquiries
  • #8
  • Sep 22, 2013 8:11am Sep 22, 2013 8:11am
Quoting Gumrai
{quote} What do you mean by "marked-up bid" Spread is difference between Ask and Bid. I have no idea what you mean by market price because there are only 3 prices in trading, they are ask, mid and bid.

Gumrai, there is usually an aggregated market price in forex. Where, is it quoted by most top tier banks and brokers in the market. Eg. Euro is at 1.3380 for the ask price on bloomberg, but a broker quotes 1.3360, certainly this is incorrect. By market price I mean the universally quoted ask price by banks/brokers/central banks. Because of course, the fair market value would be along the lines of what these institutions are quoting, but if the ask price deviates significantly from 1.3380, and quotes like 1.3340-50-60, that's unacceptable, because as I said, the spread is of course between ask and bid, but if the ask is is moved lower and not in line with what other brokers and banks are quoting, then obviously this certain broker is having issues with their liquidity or are hunting stops, do you see what I mean my friend?
  • #9
  • Sep 22, 2013 8:55am Sep 22, 2013 8:55am
Quoting cloudstr1f3r
{quote} As of bloomberg, I mean the professional platform on bloomberg, not the website of it.
How much did you pay for the Bloomberg terminal? I believe it's US$2K a month but you apparently can afford it.
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No longer trading forex. Looking for full time job.
  • #10
  • Sep 22, 2013 8:58am Sep 22, 2013 8:58am
Quoting mmaker
{quote} How much did you pay for the Bloomberg terminal? I believe it's US$2K a month but you apparently can afford it. {image}

2k per month for individual subscriber, 1.8 k for multiple subscriptions.
  • #11
  • Sep 22, 2013 9:02am Sep 22, 2013 9:02am
Quoting mmaker
{quote} How much did you pay for the Bloomberg terminal? I believe it's US$2K a month but you apparently can afford it. {image}

The point here is that the broker said it's a liquidity provider issue, things comes in handy with the bloomberg is that you could see forex quotes by certain banks, and in this case I was able to check whether the bank they said that they were having an issue in quoted the same price as they quoted around 5:00 PM New York close. Now, I checked, and the bank quoted the aggregated ask price,but, the broker quoted 20 pips off what the bank was quoting to every single fx client in the world. Which I find extremely weird, and fishy. Not here to argue, but mmaker i hope you see what I mean, if a broker starts shifting the sell price lower/higher than what is aggregated after 5:00 PM, and have 10 pip spike higher lower on a 1M candle, then there obviously is something wrong and I am sure you would agree. It just surprises me how brokers nowadays push the blame to banks where the retails have no access in contacting so they get away with hunting stops.
  • #12
  • Last Post: Sep 22, 2013 9:10am Sep 22, 2013 9:10am
Quoting mmaker
{quote} Then with that kind of money, you shouldn't be trading using retail brokers. I saw your threads and questions asked ..... with your financial power you should instead use a institutional broker such as CFH Markets (now known as CFH Clearing) where all these questions can be answered by the Sales Director and your personal account manager. Retail brokers are for retail traders playing the casino game. For you as serious investor and trader you should be serviced at a higher level. You shouldn't waste time and money meddling with (and be meddled...

Point noted and thanks.

Well I understand, but of course, this cannot be just left alone, again, being meddled by retail brokers is regulatory wise wrong and incorrect. Not going to leave this and just say ok, and I'm sure you would do the same.
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