GBP Flash crash
- This topic has 19 replies, 8 voices, and was last updated 7 years ago by
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Hi grizzly, some customers and friends of mine told me terrible story about their accounts… Hopefully I were not on market myself on Forex. IG or not, slippage are obviously enormous in that case. I hope you’re doing well and not been so affected by the GBP flash crash yourself.
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This would be a solution if it works with proorder?
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Guaranteed stops
One way to ensure your stop is executed exactly where you specified is by placing a guaranteed stop. Guaranteed stops work in the same way as basic stops, except that they will always be filled at exactly the level you set: even if gapping or slippage occurs.
If your guaranteed stop is triggered, though, it will incur a fee on the trade.
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be careful with DAX if something happens with deutsche bank
deutsche bank is to big to fail so probably a bailout and news during weekend and a big gap up on a monday so short over weekend need a guaranteed stop
but rumors can set off a flash crash at any time
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I had 2 positions closed out with slippage of 311 points each trade. I spoke to IG that night in Australia as London was closed and nobody had a clue what to do or what had happened. I sent IG an email the following day:
Dear Sir/Madam,
Last night I had 2 trades in GBP/USD closed for a loss of 411 points despite the fact I had a stop loss of 100 on each trade. Both trades were opened at 20:27.
A short while back, I was slipped 13 points in a trade and called a broker to discuss what happened. I was informed that the tick by tick price had dropped by 13 points in one hit, so I had this as slippage.
I have looked at the tick by tick chart and can’t see where the drop of 411 points in 1 tick happened, and therefore why I have been stopped out with so much slippage.
Could you illustrate where this happened and why you have charged me 311 points of slippage over my 100 stop loss.
Regards,
Robin.
This is the reply from IG:
Dear Robin,
Thanks for your email and please accept our apologise for the late response.
On Friday 07/10/2016 at 00:07, sterling witnessed a steep plunge falling approximately 10% within a few seconds (approx. 20 seconds).Your position at the moment the market started dropping went straight away onto our stop monitor to get you the fill to close your position.
As you can see, the market was extremely volatile making it difficult for us to find a fill price for all the orders.IG had then work all the stops affected by this drop to try to get a fill in the market. By the time we got this fill of 1.22, we had then to manually book the price onto your account, which by them the market already moved. 11800 is the IG low displayed on our platform, but all clients with a cable stop above 12200, and all clients COM’ed out have been closed at 12200 which, as you can see from the chart, is a competitive rate.
Unfortunately due to the legitimated market condition IG wasn’t able to close your stop at the level initially set on the position, and as a result position suffered a further loss on your balances.
A possible solution to this problem is to use guaranteed stops when entering into a trade to open your position, they are never subject to slippage.
If you have any further queries, please do not hesitate to contact us. Alternatively, please visit the IG Community where you can share ideas, knowledge and experience with other like-minded traders.
Regards,
MariaFernanda
Trading ServicesIG
Thankfully I spread my capital over multiple systems and products keeping the risk low on each system. We don’t have the option of guaranteed stops for automated trading, and hence with this current volatility the only option is to place the trades manually with guaranteed stops when my automated forex systems trigger (or just not trade GBP until it settles into a level).
I hope everyone survived ok 🙂
Robin.
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Robin,
Thanks for sharing this.
Like myself, I believe you are able to escalate this complaint from Trading Services to IG Complaince department.
Do not accept their “we did you a favour” at 1.2200 as an excuse.
I have attached in my complaint:
- Tick data. GBP/USD Market liquidity is present (i.e. bid and ask volumes), and bid/ask spreads are intact and narrow. Price velocity is not abnormal. (ticks per second are not anamolous).
- Evidence that other OTC CFD providers have filled at better levels.
Goodluck
Thanks,
Grizzly
-Edit: I midght add I am not the only IG customer who is lodging a complaint. So i encourage you to ask for a formal investigation into your transactions so that additional pressure can be applied.
There is precedent to our claims:
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I sent the mail to the compliance email address as I’d already spoken to the helpdesk overnight, but this reply came back from the helpdesk and not the compliance department. I’m still in correspondence with them and will let you know if anything good comes out of it. I had read the info about the swissy payout, so I won’t give up easily 😉
Good luck too!!
Robin.
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Hi Robin,
Yes, IG Compliance dept need to give you an intial response (within 5 days here in Aus) to your complaint and confirm that they are in fact handling the matter, and not helpdesk or trading services (which is the team that told you the ‘compelling’ story of 1.1800 low, which was in fact re-priced up from 1.1200 on their platform).
A final response is due from compliance within 45 days.
Will keep you updated
Cheers
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