Avoiding slippage such as the EURCHF crash?

[Poterc]

Hi,

beginning to get serious into trading and looking at moving from demo to real cash. The single biggest concern I have right now is slippage. Seeing the EURCHF wreck with individuals having slippage of over 2000 pips it truly disturbs me.

How can a trader expect to trade with the risk of unannounced news occasions not just wiping their accounts, but putting them into serious debt?

Should I look for ensured stops?

Is there some type of prevention somebody can result in these occasions? (I thought it was unpredicted)

Hope to hear your thoughts,
Thanks

[PauRa1]

Seeing that CHF crash earlier this year (fortunately I had been out of the market that time) made me recognize I will only steer clear of the market when there are forthcoming large central bank statements. lol!

[lurefe]

seeing that CHF crash before this year (fortunately I was outside of the market which time) made me realize that I will just stay away from the market whenever there are forthcoming large central bank statements. lol!
I finished trading 15 minutes until it occur.

I hunted that it was chart/broker mistake.

Even though many of traders lost their money, think about how many guys with 5-10 K become millionaires in just a few minutes.

(brokers haven't paid to them I guess)

[sadsuky]

There are some solutions. . .First, never exchange on a currency that it is central bank (SNB) is mad and got bad history. . .Second, don't trade on a currency that it is central bank is fixing its exchange rate utilizing a counter or a ceiling. Third, never exchange using a retail FX broker as they will not be able to provide a guaranteed stop loss and fast implementation. . .Trade directly using a liquidity provider or a bank, if you don't have a lot of money to exchange with a bank. . .it's simple, got get a fund solution like what I've done following the franc crisis and enjoy ultra fast implementation, super low spreads and real interbank liquidity without the brokers involved with the midst slipping you or playing silly games through news releases/ occasions. . .You can find the fund solution for a few grands and you'll be trading right with a liquidity provider. . .Cheers!!

[Jttelight]

Hi all, Starting to get serious into trading and considering moving from demo to real cash. The single biggest worry I have right now is slippage. Seeing the EURCHF crash with people having slippage of over 2000 pips it really scares me. How can a trader expect to trade with the risk of unannounced news events not only wiping their accounts, but putting them into severe debt? Should I look for ensured stops? Is there any sort of avoie somebody can make for these events? (I thought it was unpredicted) Hope to hear your thoughts, Thanks...
It wasn't slippage that occurred during the EUR/CHF flash crash if you may. It was a crash that dried up liquidity in the market. 1st time in history for Forex, in other-words it never happened before this moment. Additionally, it scared a lot of people, because it was one of the things that chances are happening are in the well lets put it extremely unlikely. Nevertheless it happened.

Now there's no guarantees, no one can assure you something that is unforeseeable, and if they perform. . Well I personally would not trust it. Its up to you to guard yourself not to perform it.

Now how can a trader expect to trade with unforeseeable risk, its the nature of the monster. You can not say seem, I want in, but I wish to get it done in a lesser intense level please scale my volatility down. Everything comes down to knowing is this something I wish to perform? Recognizing that things might happen out of the blue, and they're doing.

Concerning picking a broker, I have been saying for years no broker no matter how big or the number of regulators they've been 100% secure. Empires and Giants fall there's no such a thing regarding big to fail The bigger they are the more security damage is left.

As a trader you need to understand ALL the risk that is involved from the broker all the way to the market to the crazy minds of Central bankers. Everyone wishes to gain for themselves no one is saying lets give the retail traders some profits.

Start small, diversify, get used to the risk, know that it requires lots of time and you'll lose lots of cash before you experience anything devastating once more its the nature of the monster. Overtime things like that won't scare or bother you.

[oxrayoxrin98]

quote I ended trading 15 minutes before it happen. I hunted it was chart/broker error. Even though many of traders lost their money, think about how many men with 5-10 K turned into millionaires in only a few minutes. ( brokers have never paid I guess) Perhaps, 5-6 lucky men, possibly even less.
Refusal to pay the profit would be a clear token of scam, as though profits are not valid, the same is with losses.

This lucky guy from Africa make a lot of profit in a matter of moments with HF http://analysis.hotforex.com/blog/2015/01/21/hotforex-client-wins-big-by-achieving-a-gain-of-1355-pips-in-few-seconds-while-selling-usdchf/.

[Poterc]

quote

Its your responsibility to guard yourself not for someone else to do it.

Now how can a trader expect to trade with unforeseeable risk, its the nature of the beast.

For a trader you need to understand ALL the risk that is involved from your broker all the way into the market to the crazy minds of Central bankers. Was just wondering if you could elaborate on the above 3 points you created?

1) How can one protect themselves? You said you've got to understand all the risk. . But what are those and where would you find them out?

2) Also, are you indiing that this is an ongoing risk you've got to take while trading Forex?

3) Are there any prevention procedures? Surely it was not just luck people weren't trading it in this time? (news? etc?)

Thank you for the comprehensive reply,

[Ranti]

You can't control slippage, it is in the brokers discretion. If you would like to try and avoid it, exchange through times where there isn't high volatility. I really don't think your concern is slippage, your issue is if liquidity dries up and your broker can't fill your stop. If you're that worried trade an account with higher leverage and deposit a small sum, keep the rest of your capital in a bank account.

[Jttelight]

quote Was just wondering in the event that you could elaborate on the above 3 factors you created? 1) How does one protect themselves? You mentioned you have to know all of the risk. . But what are those and where would you find them out? 2) Also, are you indiing that this is a continuous risk you have to take while trading Forex? 3) Are there some prevention procedures? Surely it wasn't just luck people weren't trading it in this moment? (news? etc?) Thanks for the detailed answer, I will try to attack the questions 1. I can only answer them from my expertise and understanding and not base it on a whole for everybody so this are individualized answers.

1) First you need to acknowledge that the worst thing you can imagine could happen, does not indie that it will, but it can a lot of individuals think things that are unlikely or unlikely that wont happen, just wont happen. I on the other hand believe that worst case scenario is obviously a possibility. What is worst case scenario. The CHF flash crash might happen to be one. . The occasions of 2007 if the housing bubble burst is just another instance.

There is many ways to protect yourself essentially you never want to keep all your funds in 1 account ( you understand do not keep all your eggs in 1 basket trigger if it drops all your eggs are gone) 2nd do not keep all of your money in the accounts either 3rd have money on both sides all in all what your doing is if anything occurs all it induces is a speed bump yes shedding money sucks yes unforeseeable events suck, but you're ready for them. Its like being people apocalypse men only your doing the same with money your making sure if the worst occurs it wont hurt it will sting, but your protected. Be sure to have more then 1 broker. . If a person goes belly up exactly the same thing that your shielded.

Two) Absolutely Forex is 24 hours 6 days a week market. It crosses 3 time zones it according to economical stability or so lack off. Anything could happen at any moment, An earthquake some where, stock market crash, tidal wave, all this may lead to instability in a country and will create the market to react. Does not indie the events will be extreme, but there's always a degree of risk and it affects in size not all events occur in a flash, but it takes longer and people still do not see them coming.

3) I can't speak for many people. I wasn't trading it in the moment, because I knew that it was unsustainable, I did not understand that they'll pull the rug underneath everybody, but I did understand that the peg would succumb to much pressure and at worst it would bend and perhaps even bend a lot. Not many events are connected to an alert system. We're used to understand or expect events and take precautions or even transaction the risk. Years ago things used to be a lot more volatile then they are now. There was a lot more sudden movements, and volatility however after 2010 things have less or more mellowed out, and some individuals are somewhat complacent. Waiting in anticipation for occasions rather than always being around the guard.

Forex market is even though missing some ground still the greatest market on the planet. It's still quite volatile, things are different today then they are used to be the market is always quite dynamic. It constantly shifts and changes, we are confronted with most manipulation that has been ever succumb to FX. On top of it all were in a currency war. . Everyone is trying to find the easy injection and individuals who must experience the joy of cash needs it back. . So as China is losing traction others are attempting to fill in the gap by following the same foot steps cheap labour. Other nations are attempting to re-grow GDP which is done with inflation which is hard to do when everybody is attempting to compete with the cheapest price. . Consumer wins but economy wise it generates rifts and openings.

My advice is learning the demo is very good, but read books such as Market Wizards -- Discover macro economics - Geopolitics - and - ch up on current events for the last ten years. The more knowledge the better you're equipped, yes its a lot of work. Forex isn't an overnight success story, a lot of individuals need it to be. I needed it to be, but it took me a lot of learning a lot of years and a lot of tears lol. You stick with it, you tackle it and wrangle with it, and always keep your eye on the goal.

[lyskiddie]

quoteNow there's no guarantees, nobody can guarantee you something that's unforeseeable, and should they perform. . Well I wouldn't trust it. If you're outside the US, IG Markets do offer guaranteed stops as well as regular ones. They're expensive (additional spread) should you want to use them but they protect against slippage irrespective of the liquidity. If you exchange contrary to a pegged currency then you might want to take a look at them.

IG is a $4 bn recorded UK company that has been around for 40 decades. They lost about $50m throughout the CHF debacle but their stocks barely budged.

[bolindri]

Hi, Starting to get deep into trading and looking at transferring from demo to real money. The single biggest worry I have right now is slippage. Seeing the EURCHF crash .... Hope to hear your thoughts, Thanks This is the reason why most of us remain away from the markets just before and following the big ticket statements. The CHF crash was the outcome, the central bank's decision being the origin and of course, nobody expected the crash which is quite ironical since crashes are part of any market and should be expected. Given that, it might make sense to restrict your trading account and either park a number of their funds in a dormant account, bank or attempt up an online option. The point being that some brokerages offer negative balance protection that is just fancy words for well what do we do? . .so it is logical, esp if your finance runs into tens of thousands of dollars to be sure you keep protected. Guaranteed stops are one way to do that..so be sure your broker provides the exact same. .

[Jttelight]

quote If you're outside the US, IG Markets do offer guaranteed stops in addition to regular ones. They're expensive (additional spread) should you would like to use them but they protect against slippage regardless of the liquidity. Should you trade contrary to a pegged currency then you might want to have a look at them. IG is. They lost about $50m through the CHF debacle but their shares barely budged. I really don't anticipate anything at the markets that is ensured its just as good as its enforcement. There is a deficiency of this, and granted there's standing, but things goes south its everybody by themselves. Being.

[lyskiddie]

quote I do not trust anything in the markets which is ensured its only as good as its enforcement. There's a deficiency of this, and granted there is reputation, but matters goes south its everyone by themselves. Being a what pessimistic assists with survival. Well sure but by the exact same token your broker isn't safe, your bank isn't safe and we should all stash our gold under our mattress...

[Jttelight]

quote Well confident but at the same token your broker is not safe, your bank is not safe and we ought to all stash our gold under our mattress... I definitely do not disagree! Being aware and prepared for the worst possible situation. People find it all the time require Russia for instance.

[Poterc]

quote I'll try to tackle the questions 1 by 1. I am only able to answer them from my expertise and knowledge and not base it on a whole for everyone so that this are individualized answers. 1) First you need to acknowledge the worst thing you can imagine can happen, doesn't mean that it will, but it may a lot of people think matters that are unlikely or unlikely that wont happen, simply wont happen. I on the other hand think that worst case scenario is obviously a possibility. So what is worst case scenario. The CHF flash accident might happen to be one.... Excellent reading thanks very much for your answer.

I only have some followup questions based on what you have said perhaps you could help whenever you have enough time?

1) I know what you're saying here, however say I am trading $10 a pip that works out in 2 percent risk, if the market fell like EUR failed, that is a $20,000 invoice, just how would separating my cash into various accounts prevent this? How can I ever have sufficient money, or understand just how much to keep on the negative incase of an event like this? How could I limit such something to simply a 'sting' as you say, apposed to a complete on blow off?

I can not really say fine - heres $1000 account for me to exchange with, but I now must save another $30,000 in order to cover any possible big gaps (if you see what I am saying?)

3) Where did you find out/learn this market was pegged/unsustainable? Is there some type of site using info/warnings etc about currency pair issues etc? (I had never even heard of a pegged market until later - it really seems to get mentioned anywhere until it's too late)
I don't really want to get into bonded stops... because I've read they aren't very the whistles and bells that they look.


Looking forward to hearing back,

[Jttelight]

quote Great reading thanks very much for the answer. I only have some follow up questions based on what you've said perhaps you could help when you have enough time? 1) I understand what you are saying here, however say I am trading $10 per pip which works out at 2% risk, when the market fell like EUR did, that is a $20,000 bill, so how would dividing my cash into various accounts prevent this? How would I ever have enough money, or understand just how much to keep on the side incase of an event such as this? How could I limit such a thing to just a 'sting' as... Alright so for your 1st question, I really don't think you will like my answer, but if you cant replenish $10 per pip which does require a specific amount at minimum $20,000. I really don't think you ought to be trading $10 per pip reason being is that the events such as CHF are incredibly rare and your more then likely to reduce your cash like a poker player bleeds chips you will go all in or maintain calling either way same scenario. The main point is, you cant feel a sting if you place it all on the line. . What you need to do is that you ought to build up to it its not as enjoyable or rewarding as being a high player, but if you're able to build it up then once you get to this point A) you will be able to function on that level and B) you will have all the funds you need. If you do not you may too visit a casino at least you will have more enjoyment losing the cash.
As I stated before, I am speaking from experience and this is only my opinion on the situation. Its not something people want to listen to but the fact is bitter sweet.

Further longer if there is a gap you would like to separate your trading and only trade few currencies per account. Personally I trade 3 currencies per account, so if one of these are a bomb and then go boom like CHF did it only hurts 1 of my accounts. . I still have others. . Trading all in one account is a means of astrophe but trading only few currencies per account also helps keeps things more goal you treat them separably so that you do not have biases. Like for example I could be long EUR/USD on a single account and short EUR/AUD on another account a person who trades both exactly the same account would have a conflict of feelings. . If his prejudice long euro wouldnt take a short euro on another cross despite the fact that it could be immaterial every currency has its weighted average 100 pip move on EUR will only move EUR/AUD 50 pips. . If my predetermined DD that's a lot more its only Pre-calculated drawdown. .

It wasn't a secret SNB initially declared 3 years ago which they will keep a peg on EUR/CHF and not let it drop past 1.20 the statement has been made when the euro fell to 1.22 before return to 1.40 where point placing pressure on the EUR/CHF cross and in the moment they declared they will keep it from being breached they then retained it before that moment 3 times until they pulled the flash crash they've declared reaffirmation that they'll continue to hold the peg and then boom surprise we lied.

When they announced it, had been skeptical my thoughts were its likely to bend. They desired to reassure the markets that even though EURO is going to perform QE that they will maintain the peg whatever the quantities of pressure the issue with that notion is that you don't understand how low the euro can proceed and with every move down more tension on EUR/CHF = More cash they must sink into it also maintain the peg and its own just doesn't make sense for them to turn on printing press and keep printing cash to hold the peg so I figured it'll dive to 1.19 maybe 1.18 maybe 1.17 they'll still retain control but let it be quantified, and when I had to guess they probably entertained that thought until they decided that its just better to let it drop and then will re-gain control on it which they did. . CHF remains under SNB control only they were able to wave out a lot of the market pressure and control it easily.

Everything that is going on in the markets is no secretcliqforex(cliqforex) Has news from other outlets all on front page. Just have to be able to translate the relevant from the irrelevant the high effect from the low and the long duration from the short term.

Its a lot of advice, and do not get me wrong desire it could all be noticed immediately but it doesn't work like that. Requires a lot of learning and knowing what to search for, reading between the lines and asserting market intention. As I've stated earlier this markets are not designed to be more ATM for retail traders, have to understand the workings of this complex in order to be able to survive and then only thrive.

[isoxel1055]

Use oanda. .

[Lolopawz9]

Close down your charts, turn your computer off and go outside.

[Poterc]

quote so if one of them would be a bomb and go boom just like CHF did it just hurts 1 of my accounts. . I have many others I understand what you're saying here, nevertheless it was the negative equity which got folks? Regardless of how many accounts you have, it wouldn't blow up only that one account because it might enter negative equity that could require the money from all the others you have?

[lurefe]

quote I understand what you're saying here, however it was the negative equity which got people? Regardless of the number of accounts you have, it would not blow up only that one account because it might enter negative equity which would require the amount from all the others you own?
The matter what I truly do not understand : why the hell you have to pay negative balance?

Who'll make you to pay it?

You aren't signing anything like this while opening account, so why you have to pay?

Often times, your account can not even go as low as 0.00 deposit, as broker (because leverage) interrupts your trading procedure, therefore, when you balance goes in -XXXXX it is brokers issue, none.

Besides, you're not guilty under the legislation, since (once again) you have not signed anything like - I will pay negative balance

Do not you agree?

[Jttelight]

quote I know what you are saying here, however it had been the negative equity which got people? Regardless of how many accounts you have, it wouldn't blow up only that one account as it might enter negative equity that could require the amount from all the others you have? Only certain brokers went after individuals negative equity my broker(s) forgave the adverse balances. Allowed the magnitude of the occasion, however, the broker who did precisely the ideal thing which is stuff happened that is beyond our control were not going to punish you for it. Other brokers simply to much for them to take the strike rather than a broker that will be in my book, it just shows their interests superseded mine, and when push comes to shove they will push me, so get out of the situation before it even erupts. FXCM for example isn't going to have the ability to pull out of the situation they are in, reason being Forex is a niche market and you have made a big enough splash to scare everyone away from their approaches and there's loads of brokers who proved themselves gaining hope is hard losing it is extremely simple.

[Poterc]

quote Besides, you aren't guilty under the legislation, since (once again) you have not signed anything like - I will pay negative equilibrium Do not you agree? The risk disclosure clearly states losses can exceed your first deposit . .infact its on pretty much every single page you ever look at on their websites. You're unless otherwise said by law required to cover it, that is what I've read

[xw24]

I would be delighted to meet somebody who has an ideal solution for such a situation. Slippages always occur and if somebody has a perfect answer on how best to completely prevent them, then I would be delighted to listen to it. Fortunately I did not get struck from the EURCHF crash, but you never know when a similar one would pounce.

[Poterc]

Luckily I didn't get struck by the EURCHF crash, however, you never know if a similar one would pounce. Was it just coincidental you didn't get hit?
Or did you have a reason for not trading CHF?

[lurefe]

quote The risk disclosure clearly states losses can exceed your initial deposit . .infact its on nearly every single page you ever look at on their websites. You are, by law required to pay it unless differently said, that is what I've read
I have not noticed that until the January crash.

[Poterc]

Hi All,

Looking back in the news events on January 15th, 2015 here on cliqforex would have revealed that:

https://www.cliqforex.com/attachments/15184909571778945842.jpg

At 9:30 there was high effect news signaled to occur effecting CHF pairs.

. .Does this imply that by not investing in medium/high effect news events, things like this might be efficiently avoided?

[lurefe]

https://www.youtube.com/embed/L030FqydhDk?origin=https://www.cliqforex.com

Take a Look.

It had been printed couple of week before before crash.

[xw24]

quote Could it be just coincidental you didn't get hit? Or did you have a reason behind trading CHF? Honestly, I think is juts about both. I chose to stay from CHF late last year then surprise Gold Bullion judgment. But I might have easily gotten back at the beginning of the year, but I didn't.

[Ranti]

FXCM produced a video of precisely what occurred in the wreck and how it influenced them and their clients. Worth a watch!

[Davidoviwan]

Hi all, Starting to get deep into trading and looking at moving from demo to actual money. The single biggest worry I have right now is slippage. Seeing the EURCHF crash with individuals having slippage of over 2000 pips I am truly scared by it. How can a trader expect to exchange with the risk of unannounced news occasions not just wiping their accounts, but placing them into severe debt? Should I look for ensured stops? Is there any sort of prevention someone can make for these occasions? (I thought it was unpredicted) Hope to hear your thoughts,... Time established risk management. Or - event risk increases. There are. You are looking at 'this' commerce to perform as you anticipate, within a reasonable amount of time - if not, maybe you've picked a bad prospect. You want chance to be the cherry on top

Risk is part of trading, and always is. I hate to be cliché, but no risk means no reward.

[lurefe]

Hi all, Starting to get serious into trading and looking at transferring from demo to actual money. The single biggest worry I have right now is slippage. Witnessing the EURCHF crash with individuals having slippage of over 2000 pips it truly disturbs me. How can a trader expect to trade with the risk of unannounced news occasions not just wiping their accounts, but placing them into severe debt? Should I search for stops that are ensured? Is there some type of prevention someone can make for occasions? (I thought it was unpredicted) Hope to hear your ideas, thanks... Wish you best of luck!

FXPro includes a negative balance protection so that you may register money there if you would like.

But in regards to negative balance, I think there isn't any human being from the trading world, who'll cover attention to broker, just because it's not written on your arrangement, that you have to pay extra money if balance goes into negative.

Hope it helps!