How To Tell if Your Broker is Hunting Stops

[alanshawn]

Here is a good example of what I am scared of.
Paulson wants to turn the Fed into a kind of “supercop.” The Wall Street Journal offers more detail:
Over the long term, Mr. Paulson advocates a new, and instantly controversial, role for the Federal Reserve. Mr. Paulson sees the central bank eventually taking on the role of a "market stability" sheriff. This would move the Fed away from direct bank supervision, something the central bank has always argued is vitally important. A new entity would take that over. Instead, the Fed would use a broad authority to monitor any company or any business line that could destabilize financial markets.
They are just mere proposals at least for now and if it happens it will take years to implement.Will affect also the FX for sure.
This was the kind of GOVERNMENT intervention and control of the financial system I was thinking about.Considering the huge derivatives load one may think it might be a normal solution.Maybe, we will have to adapt then.
As for the CME CBOT etc I dont consider them as part of the *government* .Altough...

 

[keitsuke]

No wonder I keep losing money!

 

[mimar sinan]

thanks for the information, it helps us to keep away from bad brokers, this business is getting harder and harder to be a gentleman most people on the market are getting greedy, for no reason, just because they can do it.

 

[Cathy Corpuz]

This will help us to keep out of track. Lucky us sharing this information. Keep Posted.

 

[Denver Omelet]

Wondering if this is an example

This morning at 16:52 GMT, the quote at Interbank FX plunged. I did not see this on any other forex quote sites. Is this an example of stop hunting?

Quote at Interbank FX

Other Quote Sources

BTW, I just received the follow reply from Interbank FX when I asked them about the quote issue:

Thank you for contacting us regarding the price dip in EUR/USD at 16:52 GMT. That was an invalid price movement. That error is being corrected.

I wonder if they would have corrected any related trades. Anybody ever experience this and receive any resolution?

 

[f-man]

Read the reviews

This morning at 16:52 GMT, the quote at Interbank FX plunged. I did not see this on any other forex quote sites. Is this an example of stop hunting?
....
I wonder if they would have corrected any related trades. Anybody ever experience this and receive any resolution?

No wonder they are rated with average 1 star after 278 reviews!
I would be very carefull with them!
If you haven't read the reviews, it's about time that you read them!

 

[Pharaoh]

If that affected any of your positions, contact them immediately. If they say it was a real thing with the markets, wait 24 hours and a,k them again - sometimes it takes awhile for a broker to admit that they've had a problem with their data feed.

 

[monkata]

This price dip for sure hit a lot of stops. I wonder how they admit an error. I think a lot of traders didn't even consider it as an error.

 

[f-man]

This price dip for sure hit a lot of stops. I wonder how they admit an error. I think a lot of traders didn't even consider it as an error.

I suppose you are right.
Many traders (especially new ones) will just accept it without complaining about it.
On the other hand, there were some traders that had TP levels in that direction. I wish I could read what kind of notification they got from the broker, cancellig their profits...

 

[JohnSkr]

Sadly, a lot of forex brokers user their freedom and creativity to find new and more efficient ways to freely and creatively extract money from clients.

So sad and you are right. More horrible that even if you have a profitable strategy broker can make unprofitable and you will be frustrated.