Avoiding slippage such as the EURCHF crash? -
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thread: Avoiding slippage such as the EURCHF crash?

  1. #11
    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. .

  2. #12
    Junior Member Jttelight's Avatar
    25
    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.

  3. #13
    Junior Member lyskiddie's Avatar
    14
    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...

  4. #14
    Junior Member Jttelight's Avatar
    25
    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.

  5. #15
    Junior Member Poterc's Avatar
    22
    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,

  6. #16
    Junior Member Jttelight's Avatar
    25
    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.

  7. #17
    Junior Member isoxel1055's Avatar
    16
    Use oanda. .

  8. #18
    Junior Member Lolopawz9's Avatar
    15
    Close down your charts, turn your computer off and go outside.

  9. #19
    Junior Member Poterc's Avatar
    22
    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?

  10. #20
    Junior Member lurefe's Avatar
    23
    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?

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