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GAP Openings UP or DOWN !

Discussion in 'General Forex Talk' started by OzWizard, Dec 26, 2008.

  1. OzWizard

    OzWizard Corporal Punishment

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    Ok guys, it has been awhile since I have been actively reading this site. And I am not a FAN of Forex... I much prefer futures!!

    But, FXDD gave $100 to play with so I have been. Only about 5 days now.

    So I have NO real experience with the general rules... cheats, scams, lies...

    Any help? Comments?

    I was long the EURUSD before X-Mas, I had a take profit set at 1.4016. The market opened this morning at 2am at 1.4046. Guess WHAT?

    I was watching, saw the price open and sit... I saw my screen show a nice profit... AND then my order was filled at .4016 and closed.

    hmmmmm Now we know if it would of been a stop... oh NO way it would of been honored... and that is ok, I understand that!

    But how can they fill me at a price that does not exist?

    What is my chance of getting the 30 pips!!!

    What do you think Pharoah???

    UPDATE:

    The nice live chat rep helped me out! Look at the screen shot of the chat!
     

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    #1 OzWizard, Dec 26, 2008
    Last edited: Dec 26, 2008
  2. Pharaoh

    Pharaoh Colonel

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    Dude! Where have you been? I thought you were dead in a gutter after partying too hard.

    You'll have to read their TOS/Customer agreement about gap openings.

    Under these circumstances, the typical broker will honor the TP if it works in their favor and burn you on the SL if it goes against you. Burning you on a SL makes sense (see below), but you might want to read that agreement very carefully and whine about the TP.

    The reason a broker often won't honor a SL under these conditions is that some traders try a stunt that could be described as gap hedging. For example, someone places a buy trade and a sell trade on the same pair just before market close on Friday with a 10 pip stoploss and a 20 pip take profit. If the broker honors the SL and TP, any gap of over 20 pips would result in a guaranteed 10 pip profit. (20 pips profit on one trade minus 10 pips loss on the other)
     
  3. sam111

    sam111 Private, 1st Class

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    Hello Friends,

    The points that you have discussed here are important. We sometimes forget to follow these rules or read them. Which further create problems in trading. We should be careful while opening account with any broker.
     

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