Disliked{quote} Yes, the funny thing is the regulators want to cap our leverage, enforce FIFO, no hedging, not offer any protection of our funds, etc. Traders in the rest of the world enjoy restriction- free trading and protection of their money. Instead of wasting all of their resources making our lives more difficult, they should spend more time and energy policing these thieves we call United States forex brokers. It just amazes me more and more how the NFA and CFTC try to lead us to believe they are protecting us when it is the exact opposite. They...Ignored
- #7,663
- May 12, 2015 7:18pm May 12, 2015 7:18pm
- Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
- #7,664
- May 12, 2015 7:26pm May 12, 2015 7:26pm
- Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
- #7,665
- Edited May 13, 2015 4:02pm May 12, 2015 7:32pm | Edited May 13, 2015 4:02pm
- Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
- #7,666
- May 12, 2015 7:36pm May 12, 2015 7:36pm
- Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
- #7,668
- May 13, 2015 4:10pm May 13, 2015 4:10pm
- Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
- #7,670
- May 14, 2015 10:54am May 14, 2015 10:54am
- Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
{quote} Hi jason , FXCM finisihed audit my case and they said will adjust my loss. Thanks for that.. here the email..{quote} something bothering me is "Be ware that we won't do any adjustment if you met same situation next time" I must super careful to avoid that... I hope FXCM find solution about this liquidity and sliipage thing like this, and the case not happen again in the future
I'm glad you're pleased with the trade audit resolution. However, it's important to understand why slippage can occur on a stop loss order. Investopedia defines a stop loss order as follows:
What Is a Stop-loss Order?
It is an order placed with a broker to buy or sell once the stock reaches a certain price.
...Another thing to keep in mind is that once your stop price is reached, your stop order becomes a market order and the price at which you sell may be much different from the stop price. This is especially true in a fast-moving market where stock prices can change rapidly.
Source: The Stop-Loss Order - Make Sure You Use It
Anyone trading in the forex, stock, or futures markets, has to be willing to accept the risk that goes along with having orders executed during illiquid market conditions. There's no sugar coating this. Slippage is one of the risks you assume when trading. Please keep in mind that due to the UK elections, similar gaps on GBP crosses were recorded across multiple brokers: http://www.forexfactory.com/showthre...62#post8253962
If your stop loss order price is reached, then it is executed as a market order. You may want to sell at a certain price, but there has to be a buyer on the other side to complete that transaction. If there is no buyer at your stop price, then the order will be filled at the best available price. If the market gaps through your order price during an illiquid market period such as the weekend open or NFP, then you will likely experience slippage.
The risk of slippage is greatest during volatile markets such as around a news announcement like the UK elections, or Nonfarm Payrolls. Speaking of NFP, take a look at the below chart which shows the GBP/USD tick chart right at 8:30am ET during the March 8, 2013 NFP release.
http://img812.imageshack.us/img812/2...01332723pm.png
GBP/USD dropped from 1.50361 to 1.49972 in one tick. Yes one tick! That means there were no quotes quoted by the liquidity providers in between those prices. If you had an order to sell GBP/USD at 1.5020, your order would not have been filled at 1.5020 because there was no quote at that price from a liquidity provider offering to buy when you wanted to sell. You likely would have been filled at the next available price around 1.49972. FXCM isn't deciding to fill or not fill at certain prices, your orders are filled based on liquidity and where there is liquidity on the other side of the transaction to fill your order.
Also, keep in mind that unlike with some other brokers, slippage at FXCM works both ways. If you have a limit or take profit order, and the price gaps in favor of your trade, then you will get filled at the more favorable price which is trading in the market. This is called positive slippage or price improvement.
A study of over 43 million orders executed through FXCM over a 12-month period from September 2013 through August 2014 found that 52% of all stop and stop entry orders received negative slippage. However, the same study showed that over 58% of all limit and limit entry orders received positive slippage.
That's due to the momentum of price movement when such order types are triggered. Stop orders are triggered when the price is moving against your trade, while limit orders are triggered when the price is moving in favor of your trade.
The year-long study of trades executed through FXCM also revealed the following:
- 76.2% of all orders had no slippage.
- 13.5% of all orders received positive slippage.
- 10.2% of all orders received negative slippage.
Over the course of that year, FXCM clients benefited from over $21 million in positive slippage.
It's worth noting that the Market Range feature on our Trading Station platform and the Enhanced* Maximum Deviation feature on our MT4 platform allow FXCM clients to limit the amount of negative slippage they receive, while still enjoying the full benefits of any positive slippage that's available.
* On the MT4 platforms of some other brokers, the Max Dev feature is unavailable, or if it is available, then it will limit both your negative slippage and your positive slippage equally. By contrast, FXCM enhanced how Max Dev works on our MT4 platform allowing you to limit your negative slippage while still enjoying the full benefits of any positive slippage.
- #7,671
- May 14, 2015 8:34pm May 14, 2015 8:34pm
The funny thing is i never had positive slippage even when the price going crazy .
In the term of TP order the retailers like us first to execute but in the term of SL order the retailers always be the last to execute.
That's how market works.
Anyway, can FXCM add more provider to minimize slippage to happen..?
.In the term of TP order the retailers like us first to execute but in the term of SL order the retailers always be the last to execute.
That's how market works.
Anyway, can FXCM add more provider to minimize slippage to happen..?
The funny thing is i never had positive slippage even when the price going crazy
- #7,673
- Edited 1:44am May 19, 2015 1:14am | Edited 1:44am
- Joined Jul 2009 | Status: Trader | 7,414 Posts
- #7,674
- May 19, 2015 4:52pm May 19, 2015 4:52pm
- Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
- #7,677
- May 20, 2015 3:40pm May 20, 2015 3:40pm
- Joined Jun 2009 | Status: FXCM Representative | 5,808 Posts
