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  • #13,381
  • Oct 22, 2014 10:29am Oct 22, 2014 10:29am
I'm glad my alarm clock on my phone doesnt work!!! Gonna have to get out my sonic boom haha.
  • #13,382
  • Oct 22, 2014 4:52pm Oct 22, 2014 4:52pm
My stop got slipped 15 pips. Thanks fxcm.
  • #13,383
  • Oct 24, 2014 8:19pm Oct 24, 2014 8:19pm
Quoting pbylina
My stop got slipped 15 pips. Thanks fxcm.
Slippage is a risk that comes with trading and is not specific to FXCM. Furthermore, the risk of slippage increases during news events or times of low liquidity. When did this slippage occur, and on what currency pair?

Note that with FXCM slippage can be either negative or positive. Positive slippage is when your order is filled at a better price (AKA price improvement). Stop orders in are more likely to get negative slippage due the momentum of price movement when such orders are triggered. Limit orders are more likely to get positive slippage for the same reason. Below are the data from a total of 43,128,901 trades executed through FXCM over a six month period from August 2013 to January 2014.

  1. 73% of all orders had no slippage.
  2. 15% of all orders received positive slippage.
  3. 12% of all orders received negative slippage.
  4. Over 60% of all limit and limit entry orders received positive slippage.
  5. 53.32% of all stop and stop entry orders received negative slippage.

In those 6 months alone, FXCM clients benefited from over $15 million in positive slippage: http://www.fxcm.com/advantages/forex...0000000MusRAAS

  • #13,384
  • Oct 25, 2014 9:09am Oct 25, 2014 9:09am
Right, Jason. The usual broker's defense. It doesn't obscure the fact that FXCM slips stops negatively during announcements. Other forumites have complained of this elsewhere. Does it also widen the spread as well, just to make sure announcement traders lose?
  • #13,385
  • Oct 25, 2014 11:21am Oct 25, 2014 11:21am
Quoting Jason Rogers
{quote} Slippage is a risk that comes with trading and is not specific to FXCM. Furthermore, the risk of slippage increases during news events or times of low liquidity. When did this slippage occur, and on what currency pair? Note that with FXCM slippage can be either negative or positive. Positive slippage is when your order is filled at a better price (AKA price improvement). Stop orders in are more likely to get negative slippage due the momentum of price movement when such orders are triggered. Limit orders are more likely to get positive slippage...
Did 43,128,901 trades resulted in an increase profit in customer accounts ?
  • #13,386
  • Oct 26, 2014 3:51pm Oct 26, 2014 3:51pm
Quoting fxfiend
Right, Jason. The usual broker's defense. It doesn't obscure the fact that FXCM slips stops negatively during announcements. Other forumites have complained of this elsewhere. Does it also widen the spread as well, just to make sure announcement traders lose?

You should perhaps consider learning abit more about the market microstructure before pointing fingers. To put it very simply, slippage happens because there is a large volume going in one direction, and price "jumps".

For example due to a huge amount of buying, price doesn't go from 1.0001 to 1.0002 to 1.0003 to 1.0004 to 1.0005. Rather it "jumps" from 1.0001 straight to 1.0005, without ever actually showing the ones inbetween. Now imagine you had your stop at 1.0003, can you see what would happen? Of course you couldn't get filled there, because price never even got quoted there! Naturally, the next best place you could get filled would be 1.0005.

You just got slipped 2 pips.

Why doesn't your take profit ever get slipped in your favour? Simple. Say a news announcement came out green. Now there's a huge number of people buying, and you bought aswell, so your take profit is effectively a sell trade. There are hundreds of thousands of buyers willing to accept your sell trade, so being that there is no drying up of buy side liquidity, you get immediate execution.

I'm getting really bored of people with a limited knowledge of things such as slippage & the oh so popular stop hunting pointing fingers at the brokers and labelling them "bucket shops"
  • #13,387
  • Edited 6:54pm Oct 26, 2014 6:43pm | Edited 6:54pm
In that case, why is there so little slippage (or sometimes none) with Oanda during announcements? You can verify this by reading Tony's previous posts on this thread. This is unlikely to have any thing to do with "the way the market works," but perhaps more to do with the efficiency of Oanda's systems and algorithms which allow them to honor SLs even though the "real market" may have gapped in the way you describe.

Oanda does widen spreads during announcements, but other brokers I've used both widen spreads and slip SLs, the latter often by 10s of points, clearly nothing to do with gaps.

By the way, I never used the term "bucket shop" in my post above. But I could describe how a number of brokers who deserve that epithet pull various stunts to prevent announcement trading and to screw clients in other ways.

I don't work for Oanda, by the way.
  • #13,388
  • Oct 26, 2014 7:32pm Oct 26, 2014 7:32pm
Quoting fxfiend
In that case, why is there so little slippage (or sometimes none) with Oanda during announcements? You can verify this by reading Tony's previous posts on this thread. This is unlikely to have any thing to do with "the way the market works," but perhaps more to do with the efficiency of Oanda's systems and algorithms which allow them to honor SLs even though the "real market" may have gapped in the way you describe. Oanda does widen spreads during announcements, but other brokers I've used both widen spreads and slip SLs, the latter often by 10s...

Brokers don't widen spreads themselves. The spread is a result of the difference between the closest bid/ask. Larger/better brokers will have a tighter spread due to having a larger liquidity pool and therefore more orders.

Also, there are no algorithms to "honour SLs even though the real market may have gapped". Doing that would result in a loss for the broker.
  • #13,389
  • Oct 27, 2014 8:57am Oct 27, 2014 8:57am
Oanda is a market maker. So he can do it if he like it, to widen spread or do less slippage. And this take Tony to his advantage for the news. For a regular trade I would not choose this broker.
Scan all 28 Forex pairs with ONE chart... Currency Strength28 Indicators
  • #13,390
  • Edited 1:01pm Oct 27, 2014 11:00am | Edited 1:01pm
You've got it right, Bernhard. A broker with a virtual dealing desk can do what he likes with SLs -- exactly why, as you say, Tony112 (and others on this forum) succeed at trading the news. A broker can allow little or no slippage if he makes money by widening the spread -- as Oanda does. However, brokers who STP their fills to the wider market probably have less latitude for creating favorable trading conditions during periods of volatility.

Dekpips, if you don't think this is possible, or doubt what I'm saying about Oanda, please review Tony112's posts on this thread. Then do tell the broker you work for what you've discovered.

Here's a quick anecdote. I first started trading forex with a London DD broker and began straddling announcements. For the first few weeks I made considerably more than I lost, including a 120-pip profit on Carney's first speech about interest rates. I was a newb then, and believed I was on target for my first Lambo. But it was not to be. The broker eventually caught on and, in the minutes before every announcement, started limiting my buy and sell orders to at least 30 pips away from the current price. Before this, I could move these orders as close as I liked. Also the b*****ds didn't merely slip my stops, but refused to fill them at all during the news, instead putting out a message saying volatility was too great to do so.

In spite of their attempts to rip me off, I managed to get an SL on just before an announcement. The price dropped straight through the SL and kept accelerating. I began wondering if my bank would grant me a second mortgage. But just as the nasty spike reached what must have been the earth's core, it retraced as rapidly, and I ended up with only a few pips loss.

Anyway, enough about bucket shop brokers. This thread is about making money on the news. I'll try in the future to make more constructive posts about that topic.
  • #13,391
  • Oct 27, 2014 1:27pm Oct 27, 2014 1:27pm
Quoting fxfiend
Dekpips, if you don't think this is possible, or doubt what I'm saying about Oanda, please review Tony112's posts on this thread. Then do tell the broker you work for what you've discovered.

I don't work for any broker bud, i'm a trader
  • #13,392
  • Oct 27, 2014 6:30pm Oct 27, 2014 6:30pm
Apologies, dekpips. Returning to the topic of this thread, do you trade the news?
  • #13,393
  • Oct 27, 2014 10:30pm Oct 27, 2014 10:30pm
Upcoming trade: 2:00pm USD FOMC Statement

SL 16: TP: 140

Good luck.
Invest in alarm clocks
  • #13,394
  • Oct 27, 2014 10:45pm Oct 27, 2014 10:45pm
Quoting Tony112
Upcoming trade: 2:00pm USD FOMC Statement SL 16: TP: 140 Good luck.
which pair?
u look bull on usd or bear?
  • #13,395
  • Oct 28, 2014 2:59pm Oct 28, 2014 2:59pm
Quoting fxfiend
Right, Jason. The usual broker's defense. It doesn't obscure the fact that FXCM slips stops negatively during announcements. Other forumites have complained of this elsewhere. Does it also widen the spread as well, just to make sure announcement traders lose?
Quoting dekpips
{quote} You should perhaps consider learning abit more about the market microstructure before pointing fingers. To put it very simply, slippage happens because there is a large volume going in one direction, and price "jumps". For example due to a huge amount of buying, price doesn't go from 1.0001 to 1.0002 to 1.0003 to 1.0004 to 1.0005. Rather it "jumps" from 1.0001 straight to 1.0005, without ever actually showing the ones inbetween. Now imagine you had your stop at 1.0003, can you see what would happen? Of course you couldn't get filled there, because price never even got quoted there! Naturally, the next best place you could get filled would be 1.0005. You just got slipped 2 pips. Why doesn't your take profit ever get slipped in your favour? Simple. Say a news announcement came out green. Now there's a huge number of people buying, and you bought aswell, so your take profit is effectively a sell trade. There are hundreds of thousands of buyers willing to accept your sell trade, so being that there is no drying up of buy side liquidity, you get immediate execution. I'm getting really bored of people with a limited knowledge of things such as slippage & the oh so popular stop hunting pointing fingers at the brokers and labelling them "bucket shops"
As I mentioned in my previous post, the risk of slippage increases during news events or times of low liquidity. That's due to the greater volatility in price movements at these times. The difference with FXCM is that slippage can be either positive or negative. Our clients get positive slippage on limit orders as often as they get negative slippage on stop orders.

  1. Over 60% of all limit and limit entry orders received positive slippage.
  2. 53.32% of all stop and stop entry orders received negative slippage.


Quoting Mingary
{quote} Did 43,128,901 trades resulted in an increase profit in customer accounts ?
Out of the 43 million trades you mentioned that were executed through FXCM over a 6-month period, 15% benefited from positive slippage resulting in over $15 million in price improvements for our clients: http://www.fxcm.com/uk/advantages/fo...0000000MusRAAS


Quoting fxfiend
Does it also widen the spread as well, just to make sure announcement traders lose?
Quoting dekpips
{quote} Brokers don't widen spreads themselves. The spread is a result of the difference between the closest bid/ask. Larger/better brokers will have a tighter spread due to having a larger liquidity pool and therefore more orders.
As Dekpips mentioned, the reason spreads widen during news announcements is because the banks that provide the liquidity in the forex market widen their own spreads. On FXCM's No Dealing Desk (NDD) forex price feed, there are 10+ competing liquidity providers, and the best bid and and ask prices they quote us are the raw FX spreads you see on our platforms: http://www.fxcm.com/uk/advantages/sp...0000000MusRAAS

If you see FXCM's raw FX spreads widen during a news event, then that means all off the 10+ liquidity providers on our NDD price feed widened their own spreads. Banks do this to manage the risk to them in offering quotes given the uncertainty surrounding the outcome of the news event.

For others reading the last few posts, I share Fxfiend's sentiment that it was not our intention to take this thread off topic. Anyone who wants to continue the discussion about spreads during news announcements and slippage both positive and negative, is welcome to post about it in the FXCM discussion thread: http://www.forexfactory.com/showthre...26#post7827326
  • #13,396
  • Oct 29, 2014 4:31am Oct 29, 2014 4:31am
This being said from experience. OANDA is much better when it comes to slippage then FXCM is during periods of high volatility. I would not trade news with FXCM. Or many other brokers for that matter. OANDA on the other hand. I have not come across a better broker, again, out of personal experience. I have no shame in giving props to OANDA because they have delivered on their end and frankly deserve a good word put in for them so that others can see there is, among this sea of sharks, a patch of clean water if you know where to look. There is a reason why the starter of this thread uses them. Traders out there would do well to take this into perspective before making a decision. Please do your research before choosing. That's all I have to say about FXCM and when it comes to brokers regarding high volatility trading.
  • #13,397
  • Oct 29, 2014 1:22pm Oct 29, 2014 1:22pm
I bought, USD/CAD. I was thinking Cuba or Jamaica.. don't want something expensive. HEHE
Invest in alarm clocks
  • #13,398
  • Oct 29, 2014 1:28pm Oct 29, 2014 1:28pm
look how different is the spread in this 2 brokers
http://prntscr.com/510c4m
right one is Oanda
Attached Image (click to enlarge)
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Scan all 28 Forex pairs with ONE chart... Currency Strength28 Indicators
  • #13,399
  • Oct 29, 2014 1:45pm Oct 29, 2014 1:45pm
Quoting Tony112
I bought, USD/CAD. I was thinking Cuba or Jamaica.. don't want something expensive. HEHE
I bought USD/CAD +62pips
bought USD/CHF +78pips
sold EUR/USD +100pips
Closed all
  • #13,400
  • Oct 29, 2014 5:52pm Oct 29, 2014 5:52pm
hmmm... did ok on fomc, but I'm pretty interested in oanda, now...

is this oanda.ca ?
and is it their mt4?

thanks...
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