Broker widening spread and causing a loss? | Forex Factory

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Broker widening spread and causing a loss?

  • #1
  • First Post: Jan 13, 2015 2:22pm Jan 13, 2015 2:22pm
put 2 shorts on USDSEK sold at 8.06563. my trade started going in my favor but the spread increased massively after i placed my trade and i'm stuck in trade. instead of showing profit i'm in the red big time!
Before Forex I was tall, and clean shaven. Now I am an Ewok.
  • #2
  • Jan 13, 2015 3:13pm Jan 13, 2015 3:13pm
May we know who the Broker is please?
  • #3
  • Jan 13, 2015 3:34pm Jan 13, 2015 3:34pm
Quoting england33
put 2 shorts on USDSEK sold at 8.06563. my trade started going in my favor but the spread increased massively after i placed my trade and i'm stuck in trade. instead of showing profit i'm in the red big time!
Have you check the charts out to see if this is a regular occurrence ?

outside of europe exotic pairs like usd sek can widen
  • #4
  • Jan 13, 2015 3:50pm Jan 13, 2015 3:50pm
Yup that can happen especially when you trade exotic pairs which is less frequently traded. With variable spreads, spreads usually widen and then narrow but if the spreads widen and stay widen and there is no other external factors like change in volatility and volume such as during news time, then this needs looking into. You should inquire this with your broker. I have seen people get margin stopped out due to widening of spreads. That is not right.
Make your losses in demo. Earn your profits live.
  • #5
  • Jan 13, 2015 3:58pm Jan 13, 2015 3:58pm
USD/SEK spread-s can typically widen to 100-250 pips during the Tokyo session. How tight was your stop?

USD/PLN and RUB are both prone to this activity as liquidity dries up outside of NYLON sessions.
Follow me on twitter @FxLester
  • #6
  • Jan 13, 2015 8:28pm Jan 13, 2015 8:28pm
Quoting england33
put 2 shorts on USDSEK sold at 8.06563. my trade started going in my favor but the spread increased massively after i placed my trade and i'm stuck in trade. instead of showing profit i'm in the red big time!
This is a major drawback of trading with exotic currencies - very weak liquidity thus causing steep volatilty and enormous slippages. When I trade on USD/RUB on Hotforex I made max 1 trade at the start of trading period when market is relatively stable in terms of bid/ask prices, volatility is not so crazy that make 30-40 pips per jump, so your positions can sustain at the market. Later it is impossible to enter market as it's freaked out and trading conditions are intolerable..

There are some tricks in trading exotics so get to know them, before jump into the play..
  • #7
  • Jan 15, 2015 11:18am Jan 15, 2015 11:18am
i guess i was wrong because i opened up another broker and the spread was the same. it seemed that oanda had widened the spread but apparently it wasn't just them doing it. the whole forex is rigged.. anyway to make a long story short i did make a small profit.. oanda off my s-list. i still don't trust them. you can't trust anyone with money.

*i was on the verge of calling them and getting in a fight with them.. threatening lawsuit but after looking at other brokers for cross reference of bid and ask oanda was ruffly the same for this pair..
Before Forex I was tall, and clean shaven. Now I am an Ewok.
  • #8
  • Jan 15, 2015 11:25am Jan 15, 2015 11:25am
Quoting FxLester
USD/SEK spread-s can typically widen to 100-250 pips during the Tokyo session. How tight was your stop? USD/PLN and RUB are both prone to this activity as liquidity dries up outside of NYLON sessions.
no stop.. manual stop.. sometime i add to a position if i think there's going to be a correction..
it worked out for small gain.. not much but it wasn't a loss.. i had a good week no losses would you believe.

i put tight stops on pairs like EUR majors though.
was experimenting with this pair.. so far i've actually done pretty well..
i'll have to study it more before my next trade being the liquidity problem and spread fluctuation.
Before Forex I was tall, and clean shaven. Now I am an Ewok.
  • #9
  • Last Post: Jan 15, 2015 11:28am Jan 15, 2015 11:28am
Quoting Forex-Forex
May we know who the Broker is please?
it was Oanda but it was actually fair because the pair is not a major pair and other brokers had the same spread so i don't fault them for this. even if i had lost that was what the others did as well.

you get pretty emotional when you have a lot of money down.. lol
Before Forex I was tall, and clean shaven. Now I am an Ewok.
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