Wide stop at news releases

[Gamma_Jammer]

Originally Posted by MickMason

lol

Hey GJ, not seen you around, been on your holidays?

Sadly not mate, just had a lot of personal stuff going on.

Hope you're keeping ok

GJ

[FXRobot]

At news time if G?T see a nice juicy stop and they can see a mass of people placing orders in the opposite direction they will just take your stop at your expense thus taking an advantageous position.

For instance if you straddle (I believe with or without an existing position) at a news event and the market has decided to go short they will take out your buy stop effectively take a short position against you. They will say it was a "market decision". You then have to buy the position back at a lower price. I've seen F?CM partake in the same scam but haven't had an account with them recently to see if they still do it. FX?M disallow close stops now I believe.

GF? also bucket all the stops together and resolve them altogether at a common slipped price. For example if Joe has a buy stop at bid+7 pips and Alice has a buy stop at bid+12pips they both will be slipped to a common price (eg bid+whatever) during the spike even if Joe placed his stop last week.

Thus for G?T (if you feel you have to use stops) it is better to go in with wide straddle for big news events as you do not disadvantage yourself and avoid the minor to medium whipsaws. If you are successful they will delay confirmation of your order for minutes until they are in a healthy position.

Beware young Jedi !