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Re: Let's give "stop hunting" a rest
Hi Folks
There are 'bucket shop ' brokers who hunt for stops all the time.Even the large brokers reach out within a few pips to hunt for stops.The definition of few pips varies from broker to broker.Spikes and ball games are the most popular stop hunting methods.
Brokers who employ bonus based dealers have more stop hunting than brokers who do not employ dealers.These dealers have one motive .....profit at any price........including screwing their customers.These dealers have an incentive to hunt for stop losses...ie the higher bonuses.
Think how the large FX companies can afford to pay out fees to intoducing brokers .They have to make a profit somewhere.
When brokers hunt for stops they play balls with customers.They use spikes in the market and call stop loss hits as legitimate trades and other real orders during the spike as illegitimate.The brokers screwing you decides what is a legitimate trade and what is illegitimate.
During a spike a broker will call stop loss hits as legitimate.During the same spike the broker will call other trades (non stop hunting and not profitable) as illegitimate and caused by data feed problems.
You guys need to research extensively as to how 'and not if' brokers hunt for stop losses.
El cid
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