Danger.. Why You Should Stop Trading FX - CHF Rate Decision - Page 2
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Thread: Danger.. Why You Should Stop Trading FX - CHF Rate Decision

  1. #11
    Quote Originally Posted by ;
    Not accurate, Secured stop loss is exactly that, the broker charges a premium to guarantee that your trade will likely be closed in your specified price. I believe that it's a practical tool price of trading as a business.
    Is Dependent on the broker. You should read the contract carefully if not margin call is really guarantied. I'd say not in many instances - in last not with an adequate amount of money.

    CHF peg was 8 sigma transfer. There was nothing you could do about 19, if you were on the wrong side of this trade.

  2. #12
    Quote Originally Posted by ;
    **WARNING!!! MARGINE CALL CAN LEAVE YOU OWING THE BROKER BIG TIME**

    Does your broker honor margine calls through fast moving markets such as news releases or suprise bank conclusions which come out of nowhwere??? If not your account is GONE.

    I realized this due to the CHF rate decision on 09/06/11

    Let me clarify...

    I have a live mini account which I just put in $10.00 in a time so as to experience feelings as opposed to investing in a demo without the luxery of feelings.

    I had a commerce on the USDCHF with .01 lot size which equates to a little over...
    Are you aware that if you buy a home and the market falls there's not any stop loss?
    So will that keep you from buying/owning a home now?

  3. #13
    Quote Originally Posted by ;
    Depends on the broker. You ought to read the contract whether or not margin call is truly guarantied. I would say not in many cases - at not with a decent amount of money.

    CHF peg was 8 sigma transfer. There was not anything you can do about it if you're on the side of the trade.
    You have a good point I shall clarify my understanding of a GSL with my broker(have sent them an email).
    What I know (and out of my experience trading with my broker) I can not put a GSL trade without the funds already in my account, so in effect there is not any margin call, as I have risked a specific amount with a GSL closed price.

    Will confirm this once I know!

    EDIT
    From my broker's website:
    A Guaranteed Stop trade uses a #8216;Restricted Risk#8217; Stop order, which protects you from slippage.

    Like a regular Cease order, you put your Guaranteed Stop at a level at which, if our quote reaches it, your position is automatically closed. Unlike a regular Cease, it is guaranteed that, no matter how fast the market moves, your position will be closed out at your exact Cease degree, and no more.

    If you put a Guaranteed Stop, you pay a tiny extra premium. For Share CFDs we debit the Guaranteed Stop premium off the cash balance in your account once you open the position. For all other markets, the premium is billed on the opening degree of the standing

    ANOTHER EDIT:
    A Guaranteed Stop is a type of final stop order that protects completely against the risk of slippage on the closure of a commerce. In the event of a Stop your standing cannot be shut than the stop level even in volatile market conditions.

  4. #14
    Is a stop loss that is guaranteed standard with all brokers or even a few?

  5. #15
    Quote Originally Posted by ;
    Is a guaranteed stop loss standard with all brokers or a select few?
    IG Markets is the only one I know but they do not use MT4

  6. #16
    Your math is off with 1 sir... 100 pip SL risking 1% comes to trading 1 miniature lot, maybe not a standard lot. Thus a 700 pip stop out, or 7%, would give you $9,300
    Change that trade to 1 standard lot with a 100 pip SL,, you are risking 10% (most traders could call that very bad MM) thus at 700 pip stop out yes, youd have dropped 70 percent of your account leaving a $3000 balance.

    Make sense to you?


    Quote Originally Posted by ;
    Would you place to a 1 standard lot commerce having an account ballance of $10,000?

    That fits to a currency management of 1%.

    Price spikes up 700 pips and dismisses your 100 pip (cash management) stop loss.

    Guess what happens to your account?

    Gee, $3,000 left.

    Would you've signed a contract with your broker if you knew a nation was going to control their currency in a supprise move and rip $7,000 out of your account???

    3 yrs of trading with over 4,000 transactions and never seen a move just like that one. SO, You Never Know When Your Account Is Going...

  7. #17
    Quote Originally Posted by ;
    Nothing in FX is ensured. In a rapid market when price gaps your stop loss and margine are not safe. The margin call occurs at less or 100% margin amount. In case of a price gap, it closes at the first price following the gap because will prevent losses.

    Absolutely nothing to do with knowing what you're doing.
    I suggest stop trading Fx and go to devote your moneys into the shore...

  8. #18
    Quote Originally Posted by ;
    When I would have had a $10,000 standard account and made that commerce using a conservative two lots I would have dismissed the account and owed the broker 700 pips X 2 lots = $6,800. A STOP LOSS WOULD HAVE NOT HELPED!!!
    This Isn't the case with Oanda.
    While they don't guarantee accurate stop amounts either, they do guarantee you cannot lose more than what your account balance was, so no adverse balance.

    See here:
    http://fxtrade.oanda.com/legal/risk-warning

    Quote Originally Posted by ;
    The possibility exists you could sustain a total loss of initial margin funds. OANDA's trading process is designed to automatically liquidate all open positions if your margin deposit is in danger so you cannot lose over the funds that you have on deposit in your account.
    Following Oanda Forum I've seen myself cases where in these situations at the zero equity balance of the trader was revived by Oanda.

    So it ought to be part of a fantastic risk management to always have at least as much reserve money in a different account as what your trading account balance has (risk capital), so you are always able to begin anew.
    There shouldn't be more money in a busy trading account than what your risk capital is, ie. What you could afford to lose any time where you cannot continue.

  9. #19
    Quote Originally Posted by ;
    This isn't the case with Oanda.
    While they do not guarantee exact stop levels, they do guarantee that you cannot lose more than what your account balance was, therefore no negative equilibrium.

    See here:
    http://fxtrade.oanda.com/legal/risk-warning

    Following Oanda Forum I've seen myself instances in which in such situations at least the equity equilibrium of the trader was restored by Oanda.

    So it should be part of a good risk management to have at least as much reserve money in a different account as exactly what your trading account balance...
    Check I pumped markets that they have a genuine GSL

  10. #20
    I posted this under GO Markets broker thread, but here it is that you view, I was stopped out exactly about the pip during that movement on both GBP=CHF EUR=CHF transactions at which I had brief signs transactions.

    Cease was for both, I'm still trading and equity is back above where it was the day...

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