I was long EUR/USD from last week. I had a target sell or take profit sell set for 1.3505 from then. Sunday I tried to delete the take profit orders before market opened but that's not allowed so I called the broker and emailed them @ 17:35 EST when the brokerage was open. They told me the could not change or delete the order as they had to wait for it to open just like I was.
Sunday at 18:00 EST when the market opened the EUR/USD gapped open at 1.3624 The broker filled my order at 1.3505 immediately. EUR/USD even after 18 hours still have not traded that low. That is more than 119 pips difference. The broker pocketed 119 pips of my trade. OUCH!!
I Should have gotten the open price b/c if I was short w/ a stop order I would have had to accept the 1.3624 as best price. Is it a standard thing for customers to get lousy fills on Gaps in their favor b/c they had a lower target price than open price? Kinda reminds me of Jessie Livermore book about bucketshop jobs they did against the customers. This is BLATENT SKIMMING here by my broker.
The broker is Interbank FX (IBFX.com). That was a real bucketshop job.
If I was short and had a stop in place they would have filled my order at 1.3624 as best filled and I totally agree with that. I would have eaten the 119 pip loss and accept it as part of trading. I should also get the best filled on the upside also. That is some really crappy thing they did. I find INTERBANK FX (IBFX.com)actions of not filling me at the gap open price as deplorable
Here is the broker side
My discussion with IBFX about the lousy fill.
Chat start time Apr 12, 2010 9:42:20 PM EST
...
Client Services 30: Do you have the Order# of the specific order you discuss?
Ki6080944 : 41497479
Client Services 30: 4149749 doesn't relate to slippage because it closed at a take profit. With IBFX, take profits always close at the exact price of the take profit. In contrast, stop losses with IBFX have slippage because they close at the best, available price after the price gap. Since this order had a take profit, the order closed correctly at the exact price of the take profit even though the price gapped well above the price of the T/P at Sunday's opening.
Client Services 30: You just need to realize that with IBFX as your broker with price gaps, stop losses close at the best, available price; but take profits close at the exact price of the take profit.
Client Services 30: Do you like to leave trades opened over the weekend often?
Ki6080944 : yes
Ki6864844 : I leave trades open till I am right
Client Services 30: So you understand the risks of leaving trades opened over the weekend on stop losses? If the price gaps alot, the best, available price where your stop loss closes could end up being far from the exact price of the stop loss.
Ki6864844 : I sat in that trade for 1 week through the down move waiting for the news. I even added additional funds to obsorb the draw down
Client Services 30: Unfortunately, price gaps won't work in your favor on take profits with IBFX. IBFX does execute take profits at the exact price of the take profit even with a price gap.
Client Services 30: In contrast, price gaps can work greatly against you on stop losses.
Ki6864844 : It's not fair that I have to feel the pain of the gap but not the benefits
Ki6864844 : With my other brokers I have never had to worry about this. I would expect I get filled at best price offer if available
Ki6864844 : 1.3505 still have traded after 21 hours.
Client Services 30: I can't speak for other brokers, but I understand your feedback and appreciate it.
Ki6864844 : So someone got the benefit of my trade without any risk
Client Services 30: With IBFX, this is the way take profits work in the event of price gaps.
Ki6864844 : we are talking 119 pips. So imagine how upset I was. I had even sent an email before market open to cancel the order and also made a phone call to cancel or modify order before market open
Client Services 30: You can't cancel, open, nor close orders before market opening. Neither can an IBFX rep. When the market is closed, it is closed so no transcations can take palace until Sunday's opening time.
Client Services 30: That is why it is so risky to leave trades opened for the weekend. You cannot modify, close, or open new orders until Sunday at 6 p.m. EST, so your trades are subject to whatever prices are offered at Sunday's opening times.
...
Ki6864844 : I took all the risk in that trade.
...
Client Services 30: I appreciate your feedback about how if a client has to accept risks of stop losses closing far from the price of the stop loss because of slippiage and price gaps, it seems appropriate to benefit from price gaps on take profits. I will definitely forward that feedback to my supervisors. However, Order# 41497479 was closed at the correct price per IBFX's decision to close take profits at the exact price of the take profit.
Client Services 30: No technical error occurred on the close of 4149749 at its take profit.
...
Chat end time Apr 12, 2010 9:42:20 PM EST
No comments:
Post a Comment