CHF move as a broker "Stress Test" - Which tried to honor SL's? | Page 3 | Forex Factory

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

  • #41
  • Jan 15, 2015 8:29pm Jan 15, 2015 8:29pm
it looks like (another) big stitch up and scam

(same as the 2010 flash crash, which was just a big orchestrated selloff in May,
who would thought it a big sell off in May, but then the fat finger black swan event sounds so much better to the media and the sheepeople)

this time it puts many on the back foot just after the Christmas break, which is also very common

some and especially the big brokers know in advance of these CB moves so would of already been prepared
and seeing as most of the bucket shops involved (no names) don't actually put up any cash to the real market
its all win win
i wish i was in the hole for clients owing me 25 or 250mill,

(that's all i have to say about that)
  • #42
  • Edited 8:53pm Jan 15, 2015 8:30pm | Edited 8:53pm
Quoting jw1981
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...
The "next event" is probably the BoJ Intervention or the surprised move by the Fed to lower interest rate with the oil prices so low.
Make your losses in demo. Earn your profits live.
  • #43
  • Jan 15, 2015 8:31pm Jan 15, 2015 8:31pm
Quoting trader121
{quote} ???????????? 225 Million? Crazy. What about other brokers? What about OANDA?
https://www.google.ca/search?client=...-8#q=NYSE:FXCM

I guess there is always something to trade....
Daily progress produces consistent growth
  • #44
  • Jan 15, 2015 8:32pm Jan 15, 2015 8:32pm
Quoting grin
{quote} Short fall in capitalization does not mean they are out of operating capital. Most likely they will be given time to correct the deficiency. Client money must be in segregated accounts thus unaffected even if a broker runs out of its own funds. They are not allowed to dip into client money.
Noone suggests to dip into client money, the problem is they have a shortfall in client accounts because of clients losing more money than they deposited. They will have to cover that with company funds, and then try to get it back from clients who are in the red.

225m is not pocketchange for fxcm, latest statement says they have 300m in cash.
  • #45
  • Jan 15, 2015 8:36pm Jan 15, 2015 8:36pm
Attached Image
Daily progress produces consistent growth
  • #46
  • Jan 15, 2015 8:48pm Jan 15, 2015 8:48pm
Quoting Leomeister
Jan. 15, 2015 Today's surprise drop in the value of the CHF Swissy is a good opportunity to "Stress Test" your broker and VPS if you use one. If your broker tried to honored your SL settings on a CHF pair with a fill to close close to your SL level, could you please post their name in this thread?
Thanks for starting the thread, Leomeister. The more transparency and unbiased info in the opaque broker's world, the better.

I cannot provide any SL execution details as I kept away from CHF pairs when it all exploded, but here are EURCHF chart screenshots from three of my live accounts, just to illustrate the quality of the respective feeds, being under extreme pressure. The pics speak for themselves...

Armada Markets (now Tickmill)
Attached Image (click to enlarge)
Click to Enlarge Name: EURCHFM1tickmill.png Size: 24 KB


IC Markets
Attached Image (click to enlarge)
Click to Enlarge Name: EURCHFM1icmarkets.png Size: 28 KB


Pepperstone
Attached Image (click to enlarge)
Click to Enlarge Name: EURCHFM1pepperstone.png Size: 33 KB
mind over matter
  • #47
  • Jan 15, 2015 8:49pm Jan 15, 2015 8:49pm
Quoting trader121
{quote} ???????????? 225 Million? Crazy. What about other brokers? What about OANDA?
I think its a matter of time before oanda comes out too. A trading buddy got his account wiped out trading USDCHF with a -ve equity. Should be a similar story to that of FXCM I reckon. Let's see what this day has in store.
  • #48
  • Jan 15, 2015 9:05pm Jan 15, 2015 9:05pm
Brokers who were hedged against their customer positions are likely bankrupt. Their traders went negative, but the broker still owes the bank they were hedged with.

Bucket shops should be fine... their customers have the same negative-balance issue, but the broker doesn't owe anyone on the "other side".

And the bucket shops win again!
  • #49
  • Jan 15, 2015 9:22pm Jan 15, 2015 9:22pm
So so far, which brokers has near the SL customer set.
It seems some people has different result even in same brokers.
  • #50
  • Jan 15, 2015 9:22pm Jan 15, 2015 9:22pm
had a long from 12.01.2015 with slippage of the SL 2 pip as it was set to the short pending trigger price

short pending execution to the pip Broker Tickmill, previous Armada Markets.

was my best pending trade overall. In average Pip per minute

The data feed is already posted by kosmo
Attached Image (click to enlarge)
Click to Enlarge Name: EURCHF.PNG Size: 28 KB
Attached Image
just do it
  • #51
  • Jan 15, 2015 9:23pm Jan 15, 2015 9:23pm
Quoting Goat
Brokers who were hedged against their customer positions are likely bankrupt. Their traders went negative, but the broker still owes the bank they were hedged with. Bucket shops should be fine... their customers have the same negative-balance issue, but the broker doesn't owe anyone on the "other side". And the bucket shops win again!
If the brokers hedged against their client's positions, wouldn't this be a wash for them? If their clients went negative that means they lost money but the clients' losses would be the broker's gain which will exactly offset the broker's own losses on their hedge positions with their banks so everything should be a wash for the broker. That's the whole point of hedging against the clients' positions so they would be risk-neutral and would not need to trade against their clients as so claimed by MM's like Oanda, isn't it?

And the ECN brokers, they wouldn't even be at a loss because they don't take positions at all. They merely match orders between all counter-parties and earn a commission from everybody.

Isn't that how it works?
Make your losses in demo. Earn your profits live.
  • #52
  • Jan 15, 2015 9:28pm Jan 15, 2015 9:28pm
Quoting thodie
had a long from 12.01.2015 with slippage of the SL 2 pip as it was set to the short pending trigger price short pending execution to the pip Broker Tickmill, previous Armada Markets. was my best pending trade overall. In average Pip per minute The data feed is already posted by kosmo {image} {image}
OMG! Just don't let all the traders who went into negatives see this. They are going to cry over this. Your sell price was exactly their buy price. Your gain was exactly their losses. But congrats!
Make your losses in demo. Earn your profits live.
  • #53
  • Jan 15, 2015 9:30pm Jan 15, 2015 9:30pm
Quoting Forexia
but the clients' losses would be the broker's gain
Right, but the traders can't pay. They have negative balances. Read the FXCM statement, traders are in debt for a quarter billion. It's not like FXCM can take them all to court to get the money.
  • #54
  • Jan 15, 2015 9:43pm Jan 15, 2015 9:43pm
Quoting Forexia
{quote} If the brokers hedged against their client's positions, wouldn't this be a wash for them? If their clients went negative that means they lost money but the clients' losses would be the broker's gain which will exactly offset the broker's own losses on their hedge positions with their banks so everything should be a wash for the broker. That's the whole point of hedging against the clients' positions so they would be risk-neutral and would not need to trade against their clients as so claimed by MM's like Oanda, isn't it? And the ECN brokers,...
We'll see if they are real ECN's or not..
  • #55
  • Jan 15, 2015 9:47pm Jan 15, 2015 9:47pm
Quoting Goat
{quote} Right, but the traders can't pay. They have negative balances. Read the FXCM statement, traders are in debt to FXCM for a quarter billion. It's not like FXCM can take them all to court to get the money.
If this is regarding to negative client balance, this happens to all brokers, regardless whether they are MM that hedge against client positions, or bucket shops or ECN's.

Well one way for the broker to recoup a little bit of the loss is just to pretend none of it ever happened. The pair was untradable anyway for a period of time so that means there was no price available to trade at at that time so if there was no price to trade at, how can there be losses? The price did bounce back a little bit later and the best the broker can do is just to close the position at a more reasonable price level that was provided under normal trading condition so the losses is at least minimized for the trader and the broker.
Make your losses in demo. Earn your profits live.
  • #56
  • Jan 15, 2015 10:07pm Jan 15, 2015 10:07pm
I was customer at JFD brokers. They are scammer and cheaters. The spread of eur/chf was yesterday over 2000 pips (means 20 cent) and destroyed than all my postions. It was a quotation manipulation, now chace in any way with the SL.
  • #57
  • Jan 15, 2015 11:23pm Jan 15, 2015 11:23pm
Quoting Forex70
I was customer at JFD brokers. They are scammer and cheaters. The spread of eur/chf was yesterday over 2000 pips (means 20 cent) and destroyed than all my postions. It was a quotation manipulation, now chace in any way with the SL.
Wouldn't call them a scammer, but this brings out the question... Brokers could have manipulated their spreads taking advantage of the situation.
  • #58
  • Jan 15, 2015 11:25pm Jan 15, 2015 11:25pm
Didn't trade CHF pairs yesterday. But this is how LMAX live looked like.

Attached Image (click to enlarge)
Click to Enlarge Name: EURCHF.lmxM1.png Size: 16 KB

Attached Image (click to enlarge)
Click to Enlarge Name: EURCHF.lmxM1-candles.png Size: 14 KB
  • #59
  • Jan 15, 2015 11:41pm Jan 15, 2015 11:41pm
MY LUCKIEST DAYYYYYY !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I took a SELL order with 0.6 lot 30 minutes beforeeee this GREATT TSUNAMIIII at 1.0217 !!
I CLOSED THE TRADE WITH 13.000$ PUREEE PROFITTTTTTTTTTT
HAVE A GOOD TRADES EVERYONEEEEE
MY TRADER SENT AN EMAIL LATER APOLOGIZING JUST FOR NOT TO BE ABLE TO ANSWER THE PHONE ))
and YES i withdrawed my money
its ALPARI ladies and gentlemen
  • #60
  • Jan 16, 2015 12:22am Jan 16, 2015 12:22am
Oanda wrote me, and I am sure now it is good broker and should stay with them.


"Dear Valued Client:

Early on January 15, 2015, the Swiss National Bank (SNB) sent global financial markets into turmoil with a surprise move to eliminate its three-year-old cap on the franc (CHF).

In the wake of this unprecedented market event, OANDA demonstrated its ongoing commitment to doing right by its clients. Despite suffering losses and vanishing liquidity in the institutional hedging market, OANDA remained true to its 14-year legacy of transparency, integrity and fairness to our clients. OANDA did not re-quote or amend any CHF cross client trades. We even took the further step of forgiving all negative client balances that were caused when clients could not close out their positions fast enough (where permitted by regulations).

As a very well capitalized broker, we are proud to report that it is business as usual at OANDA: client trading, deposits and withdrawals are processing normally.

OANDA is proud of its strong reputation for fairness and integrity. We thank our customers for their continued loyalty and welcome new traders who want to experience outstanding service and execution.

Specific questions about individual fxTrade accounts will be addressed by our Client Experience team via http://www.oanda.com/corp/contact/.

Thank you for trading with OANDA,"
On my way to financial independence - if others can do it - I can do it
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