What is this? Swiss Franc Calculations

Hi there,

So as alot of you, I also lost money on the CHF news. My account ballance is in the big negatives, my broker is somewhat chasing me. But the strange thing is, my ballance shouldn't be in the negatives.

So this is what happened. I took a BUY position on 11 January on USD/CHF 1.01650 with x lot. I never use a stoploss, but to stop losing some point I open a position the otherway. In this case I opened a USD/CHF SELL position x lot. At the same time as the BUY position I opened a SELL market order 1.00746 90 pips below the price I just entered. Everything is allright at this point.

The news hits on 14 January, that day I wasn't trading early. Price shoots down and takes my SELL market order 1.00616. It slipped about 13 pips, no big deal. Markets freeze at 11:30:54. At this point I have a BUY and a SELL position with both x lot on USD/CHF. This means that where ever the market goes I always lost 103 pips, +- 2% of my account. If I would be on the computer this moment I would be relaxed, as I know I can't lose anything more where ever the market goes.

11:40:18 The market (unfreezes?)

11:40:18 My SELL position closes at the price 1.29289 (lol, price never been there?)
11:40:19 My BUY position closes at the price 0.79758
Included a screenshot from my trade explorer....

11:40:19 My account is margin called.


How is this even remotely possible, the price just flipped in 1 second. More strange is that I had the exact same setup on GBP/CHF. On this pair everything worked accordingly and I didn't lose more then 2% of my account. Obvious these two trades on GBP/CHF were closed at the same time my account was margin called.

I am furious and desperate as my account is 6 figures negative.

-Jysticim

Anybody that could make me anything clear?

Based on what you have said so far, this is clearly error by broker system. 1.29xx never reached anyways (not even close). Report your broker and account details to regulator. I think you have a good case.

At most what broker should do is to adjust your sell saying 1.0061 was a bad price since mkt had no liqudity so they may adjust that lower - something like vwap of next 15 minutes. your account should still have some equity left.

Already reported to my broker, waiting for a reply.

Broker can't do the bold sentence right? The move was down, this means you can get filled(SELL) almost at every price. Thats also why it slipped like nothing.

Since the move was sharp down, it would be hard to get filled at good price so slippage can be much higher than 13pips. if it was going up, then you could sell at your price. BTW this was SELL STOP order.

basically what happened that day is that banks adjusted their trades with brokers too - earlier banks filled brokers orders at say 1.16 for EURCHF (banks bought, brokers sold) but price within seconds went to 1.10 then 1.00 so they could not hedge anything. Basically bank's price didnt move down as fast as EBS prices were going down. this ended up banks buying at too high a price hence the adjustment lower.

I heard someone else had a similar situation where a filled order was reversed 12 hours later. I think some brokers are trying to get back some of their losses so they're canceling all filled orders on the fall even if they originally showed that they were filled. Look @ what they gain just from your account by canceling the one order. Imagine how much they can make if they do this for anyone that had a similar situation. If you have proof that the "sell" order was shown as filled you should file a complaint. I don't know what regulations you have @ your broker but I wouldn't let them get away with this without a fight. Definitely wouldn't pay them for the negative balance.

***Looking @ your screenshot, how can closing price be @ .7975 and 1.2928 if both close @ 10:40 ???????
***How can you even have a margin call if you have a buy & sell in the same position which your screenshot clearly shows???????
Smells really rotten to me.

Waited now 2 days for email response, still nothing. They probably don't even awnser me before the weekend. Fggts

Mailed back and forth, slow response, they even mistake my name with somebody else. I think I am going to step to regulators and/or court because this is just insane.

Is the broker regulated? If so, I'd start involving the regulatory body.

What they've done sounds ridiculous! I hope you keep us posted with the progress.

Edit: just saw your recent post. Good luck with it.

Yes, broker is regulated. If they don't fix this fast Ill I am going to present them in this thread and make a new thread. I am probably also going to news papers, maybe they can write something about it. Because this is just retarded.