Did my broker screw me?

Gordo

Recruit
Messages
2
My EA had placed a pending limit order to open a sell position above the market. The market opened after the weekend with a big gap up above where my order was at. I would have thought I would be lucky in such a situation because I thought my broker must fill my order at the market open price. But what happened instead was that I was filled at the price specified in my limit order, not at the market open. I argued with IBFX. I said you cannot fill me at the order price because the market didn't trade at that price, it gapped up. There response was that this is perfectly normal to get filled at the order price. Are they correct? Am I all wrong about this? I'm sure if I was buying on a stop above the market and it gapped up, they would have filled me at the open price. It seems to me the brokers could be stealing a lot of pips this way.:shocked:
 

Stony

Sergeant
Messages
167
My EA had placed a pending limit order to open a sell position above the market. The market opened after the weekend with a big gap up above where my order was at. I would have thought I would be lucky in such a situation because I thought my broker must fill my order at the market open price. But what happened instead was that I was filled at the price specified in my limit order, not at the market open. I argued with IBFX. I said you cannot fill me at the order price because the market didn't trade at that price, it gapped up. There response was that this is perfectly normal to get filled at the order price. Are they correct? Am I all wrong about this? I'm sure if I was buying on a stop above the market and it gapped up, they would have filled me at the open price. It seems to me the brokers could be stealing a lot of pips this way.:shocked:
Absolutely true, but it is hopeless to complain as long as your broker fills your limits at the price you ordered...
 

Pharaoh

Colonel
Messages
19,691
Ask them a simple question: If the market had gapped the other way and would have filled an order to your advantage at the price you specified, would they have honored the pending price?

Most likely, if that had happened, they either would have given you a "no fill" or would have used the gap to cause massive slippage against you.
 

Gordo

Recruit
Messages
2
Thanks Stony and Pharoah for your replies. I agree. If these forex rules are legal, then it's a no win situation for the trader. Likewise, if I had a pending sell on a stop below the market and price gapped down, I'm sure they would fill me at a price after the gap, but not before the gap, and not in the middle of the gap either. This scenario I would not question because I would never expect an order to be filled where the market never traded. Apparently, brokers lawyers must have written the rules regarding pending limit orders in the brokers favor. Brokers are suppose to bring buyers and sellers together for a small service fee (spread). So if I agree to sell something at a price (as stated in the first post), but there are no buyers at that price, then who do you think is buying it? The broker buys it from me at the specified price then immediately sells it to someone else after the gap, and puts my profit in his pocket. Now it all makes sense.:)
 
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