CHF move as a broker "Stress Test" - Which tried to honor SL's? | Page 2 | Forex Factory

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CHF move as a broker "Stress Test" - Which tried to honor SL's?

  • #21
  • Jan 15, 2015 4:59pm Jan 15, 2015 4:59pm
FXCM I was short GBPCHF two standard lots Wednesday night at the top of daily consolidation around 2100 hours, set an entry order to sell one more lot at 1.5595 thought for sure I would have been in 3 standard lots, (didn't get the third lot filled) Set Stop loss and Limit for profit. Woke up late ran to office to remove limit order 5 min to late, limited out to the pip +300 pips. Funny how you a never slipped in the positive.
  • #22
  • Jan 15, 2015 5:16pm Jan 15, 2015 5:16pm
Quoting PixeLM
Globalprime slipped 45 pips past USDCHF SL.. No biggie.. However, clients of mine mirroring my trades are wiped out. One in excess of 11k.
Did your clients also have their accounts with Global Prime? How would you explain the extreme difference between your fill and that of your clients?
  • #23
  • Jan 15, 2015 5:49pm Jan 15, 2015 5:49pm
Quoting Fx-Baron
FXCM I was short GBPCHF two standard lots Wednesday night at the top of daily consolidation around 2100 hours, set an entry order to sell one more lot at 1.5595 thought for sure I would have been in 3 standard lots, (didn't get the third lot filled) Set Stop loss and Limit for profit. Woke up late ran to office to remove limit order 5 min to late, limited out to the pip +300 pips. Funny how you a never slipped in the positive.
I've previously had positive slippage after weekend trading with broker IG
Hope for the best, prepare for the worst.
  • #24
  • Jan 15, 2015 7:21pm Jan 15, 2015 7:21pm
Quoting nkimandi
What has happened was a shocker...my heart goes to all my fellow retail investors..though a proper ECN/STP broker shouldn't worry so much..The Market Makers and 'bucket shops' who trumpet and hoodwink clients about them having No Dealing Desks or are STPs but who take positions against their own clients are the using their Book B are the ones in a real bind..well the tide sure receded and has left the swimmers(brokers) all chilled up..lets see who is in their briefs and who was starkers..already IG Markets is the hole to the tune of $45 million...http://leaprate.com/2015/01/ig-group...works/....what...
FXCM just reported they are in the hole for $225million!
Trade what you see, not what you think!
  • #25
  • Jan 15, 2015 7:29pm Jan 15, 2015 7:29pm
Jeezus. 225m. Apparently EVERYONE and their moms were short the CHF. I dont get it. The level of ineptitude in retail is staggering.
  • #26
  • Jan 15, 2015 7:40pm Jan 15, 2015 7:40pm
Quoting OMGtrader
{quote} FXCM just reported they are in the hole for $225million!
???????????? 225 Million?

Crazy. What about other brokers? What about OANDA?
Forex is a losers game.
  • #27
  • Jan 15, 2015 7:40pm Jan 15, 2015 7:40pm
Quoting bassramy
FXCM and FxPro honored my SL Exactly on 2 CHFJPY and 1 AUDCHF open positions. Best, B.R.
I must be the only fxcm customer who has slippage in the thousands
  • #28
  • Jan 15, 2015 7:53pm Jan 15, 2015 7:53pm
Excel Markets just went bust after today. Some broker in New Zealand.
Trade what you see, not what you think!
  • #29
  • Jan 15, 2015 7:56pm Jan 15, 2015 7:56pm
Well, you know what's funny about all this? Next week, when the ECB News are coming, we might see similar moves as today
Forex is a losers game.
  • #30
  • Jan 15, 2015 8:00pm Jan 15, 2015 8:00pm
Quoting trader121
Well, you know what's funny about all this? Next week, when the ECB News are coming, we might see similar moves as today
i doubt it, this move was soo dramatic because it was so unexpected. The ECB won't really be a surprise as the markets are actually expecting it to come, question is how much.
Trade what you see, not what you think!
  • #31
  • Jan 15, 2015 8:28pm Jan 15, 2015 8:28pm
Quoting OMGtrader
{quote} i doubt it, this move was soo dramatic because it was so unexpected. The ECB won't really be a surprise as the markets are actually expecting it to come, question is how much.
Possible. We'll see next week.

Back to topic, let's consider this scenario:

Retail trader, 45, not really a trader but has some interests in the markets. trades only ocasionally, about 2 times per month on his leveraged account.

Has a couple of positions open, of course on the wrong side. A big move comes, he can't get out of the positions beause there is no liquidity available. The broker margin calls him after 40k ( he had 40k in his account), but that does not work becuase there is no liquidity so those positions remain open.

The result is, that the trader is now 225k in the red. The Net Worth of the trader is 110k.

What happens next?
Forex is a losers game.
  • #32
  • Jan 15, 2015 8:32pm Jan 15, 2015 8:32pm
Quoting shrike
Jeezus. 225m. Apparently EVERYONE and their moms were short the CHF. I dont get it. The level of ineptitude in retail is staggering.
Of course ... a lot of professionals got burned as well as this was considered a 100 % safe trade - clever move by the SNB. It is interesting to see all the members here who firmly believes that their stop must be honered by their STP brokers - sorry guys, but that is not how it works
  • #33
  • Jan 15, 2015 8:48pm Jan 15, 2015 8:48pm
Quoting fido
{quote} Of course ... a lot of professionals got burned as well as this was considered a 100 % safe trade - clever move by the SNB. It is interesting to see all the members here who firmly believes that their stop must be honered by their STP brokers - sorry guys, but that is not how it works

I fail to see the upside potential of this trade. It was obvious that eur/chf would be significantly below 1.20 without the floor.
  • #34
  • Jan 15, 2015 9:53pm Jan 15, 2015 9:53pm
Quoting OMGtrader
{quote} FXCM just reported they are in the hole for $225million!
If true, wonder if there will be a run on withdrawls - and if they will be honored?
  • #35
  • Jan 15, 2015 10:04pm Jan 15, 2015 10:04pm
Quoting shrike
{quote} I fail to see the upside potential of this trade. It was obvious that eur/chf would be significantly below 1.20 without the floor.
I'm guessing the upside was positive swap and they didn't consider what would happen if floor removed or thought it wouldn't happen.
Hope for the best, prepare for the worst.
  • #36
  • Jan 15, 2015 10:06pm Jan 15, 2015 10:06pm
Quoting jeffx
{quote} If true, wonder if there will be a run on withdrawls - and if they will be honored?
My assuption would be that the regulator(s) would put a freeze on withdrawls until the client trust accounts will be whole. Because if the firm is insolvent, every client will get an even split on what is left - this cant be done on a first come first serve basis.

But i would also assume that FXCM is in a position to cover the shortfall in the client trust accounts with company funds in the short term, maybe even first thing tomorrow. I am sure they are busy all night and will issue further statements about the situation very soon, since there will be many people asking this question.
  • #37
  • Jan 15, 2015 10:22pm Jan 15, 2015 10:22pm
Quoting trader121
{quote} Possible. We'll see next week. Back to topic, let's consider this scenario: Retail trader, 45, not really a trader but has some interests in the markets. trades only ocasionally, about 2 times per month on his leveraged account. Has a couple of positions open, of course on the wrong side. A big move comes, he can't get out of the positions beause there is no liquidity available. The broker margin calls him after 40k ( he had 40k in his account), but that does not work becuase there is no liquidity so those positions remain open. The result...
Stupid chicken s***! Taking our money when the market suits them; when s*** hits the fan, they all scramble out of sight leaving us holding the bag. And they call themselves "market makers"? Market makers, as the name implies, is supposed to make a market and it doesn't say they only need to make market when the market condition is to their favour; no it means they are supposed to be there making a market no matter what happens, standing ready to buy and sell even when otherwise there is no market. Otherwise what's the point of having "market makers"? Looking like us little retail traders are the ones making the market, always available to trade no matter what happens. LOL We should be called "Market Makers".
Make your losses in demo. Earn your profits live.
  • #38
  • Jan 15, 2015 10:27pm Jan 15, 2015 10:27pm
Hi guys, any feedback from LMAX?? I haven't touched CHF but quite concerned. Sent an email to the guys asking for an update on yesterday's moves. Would appreciate if anyone could share their experience with lmax during yesterday's event.

On another note, yesterday's event might have shaken some brokers, but that in no means offers a more safer or transparent brokerage. The ones that survived (including us traders) merely dodged a bullet. Who knows what other event next time will catch up to us. I suppose the term 'Risk' in trading just got a bit more broader.
  • #39
  • Jan 15, 2015 10:28pm Jan 15, 2015 10:28pm
Quoting dk58198
I got burned bad by Paxforex they are thief's I had 2 short positions with them and around 5am eastern time paxforex sl my trades at 103.26 it never reached that level at all what. When I called them they blamed there feed in short I ended up loosing on the trade of my life. point is please be careful who you choose as your broker some of them as I found out the hard way did use this opportunity to scam the small guys
Opened a Sell order for eurchf at 1.20079 few days ago. I am on fixed spread. My order was auto squared off at 09:32:35 at a price 1.16125. The price on the chart at 9:32 to 9:33 shows high as 1.15200 and low as 0.90951. I feel that the borker should square of at the minimum of 1.15200.
Auto square of done due to other high negative orders. The auto square off on the negative trades was right but on the positive trade the broker squared off at high spread. When asked to the broker he gave different answers. First he says, there is no such product of variable with them, when I am showing the proof, he says, I have been given a better spread then fixed. Now the broker stopped replying to my mails.
  • #40
  • Jan 15, 2015 10:28pm Jan 15, 2015 10:28pm
Quoting grin
Bloody... Deutsche Bank's Autobahn quotation system shut-down after the SNB's announcement. This was likely the reason for suspended pricing down the chain fro those who primarily relied on it. Some NZ broker closed the shop after client losses overwhelmed its capitalization. Client money is safe due to being in segregated accounts and is in the process of being returned. FXCM says that its clients owe the firm 225 million which may put the company under statutory capitalization requirements if the debt is not settled.
That makes sense as Deutsche Bank is the primary liquidity provider on pretty much all of those forex broker's webpage. So if Deutsche is not even there trading, then nobody is which poses the question why did some of the brokers still executed trades and filled orders when one of their biggest prime liquidity providers was not even there trading?
Make your losses in demo. Earn your profits live.
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