Query about interpretation of rules of the game

[gaussias]

here is the scenario:

i had entered a order with a SL at 1.7500.the market moved against me and the price quoted by the SB company reached 1.7499 and went again below it.but the platform had closed my position at 1.7500.the SB companys interface shows a high of 1.7499 and not 1.7500.i dispute the closure of my position and want to know the interprataion of the rules of the game for SB cos.the SB company doesnt quote a bid and ask price like the market does,a particular price is quoted and the spread is included when the order is placed.also the SL is guaranteed at the price that you have entered.

the response from the SB company has been follows:

1- that the bid has been 1.7499 and hence the offer would be higher than that and hence the stop was taken out.

My response: since the SB company includes the spread when taking the order which is +/- the price quoted by them.the stop loss has to be precisely what is quoted and nothing more or less than that.

2- all the highs are the highest bid price and all lows are the lowest offer price.

My response: the Highs and lows are what are quoted by the SB company and hence it should be 1.7499 rather than 1.7499 + (anthything else).the price quoted by the SB cos is derivative of the market and hence the highs and lows have to be precisly what is quoted by the SB cos system.

3- The stops may be taken out above/below the indicated highs/lows and that the published highs and lows by ourselves are for indicative purposes.

My response : the highs and lows should be precisly what are quoted by the SB company.since the system is based on the prices quoted by it the prices are precisly what they are and not meant only to be indicative.


Closing out my position has cost me some money.

My question is regarding the interpretation of the prices quoted by the SB company.am i correct in saying that if the high quoted by SB company (1.7499) hasnt reached my SL (1.7500) and my position shouldnt be closed out.

 

[Directional]

Closing out my position has cost me some money.

Yes, but it has made the SB company some money. They are probably quite pleased with the situation.

My question is regarding the interpretation of the prices quoted by the SB company.am i correct in saying that if the high quoted by SB company (1.7499) hasnt reached my SL (1.7500) and my position shouldnt be closed out.

that is how it *should* work... if you were trading on the real underlying, you couldnt be executed if the market didnt trade at your stop.

Unfortunately, when you trade with an SB firm, *they* are both the market, and the market maker, so they make the rules and of course, they are going to tilt them in their favour whenever they possibly can.

There will undoubtedly be some rule they can hide behind about the prices displayed being indicative only and that the real market (ie: the market they are making) may be trading at a different actual price - as you have seen since the price quoted was 1.7499 when in fact their market did trade at 1.7500 because they traded with you.

Just another reason why not to trade thru an SB if you can possibly help it.

 

[jimbo57]

"Just another reason why not to trade thru an SB if you can possibly help it."

Could not agree more. I ditched SBs about a year ago after a string of bad experiences. Best thing I ever did trading wise at least.

 

[rizwanuk]

Can you please tell us which SB company it is so others can be aware of them.
You may want to threaten them of the possibility of complain to their regulator and see if it helps.

 

[gaussias]

the SB co in question is igindex.

my interpretation of how things work are that the concept of bid/ask spread doesnt come into picture when trading with a SB company (i am not sure of how it works for others) since the prices quoted for sell and buy are the same and that the spread has been already included in the price when a order is placed and so what price is quoted is the price that you would trade on.so if the SB is quoting a price 1.7478 (Sell/Buy) and i am shorting then my order is taken at 1.7470 (Which is -8 for a controlled risk spread, the spread the company is charging).so if my stop loss is lets say 30 then its 1.7500.if the market has moved against me then i would say that unless the price that is quoted by SB has reached 1.7500 precisley the stop should not be hit.what the SB says is that the market was quoting at 1.7498-1.7502 so the middle price is 1.7500 and so the stop has been hit.somehow it has happened the second time and thats what has left me a bit annoyed that i havent got a fair deal.the previous time the high value was displayed after a considerable amount of time.in this instance the high value was displayed even after it had moved a considerbale distance away.its not as if my bandwidth is slow (i have a broadband at 256kbps)and i have been able to track the price precisely.

since it has been this close that raises the doubt over how things work and really comes down to precise interpretation of how the rules are.any more inputs from users of SB platform.

 

[TWI]

I had an issue with CMC recently. I was trading BeanOil with them and had stacked buy and sell orders in Dec. I also had these orders in the CBOT Chicago. I was filled on a buy and sell in Chicago and the price clearly traded through my price on the sell-side but the SB only filled the buy order. When I called and asked for an explaination they said that their session ends before chicago and despite the fact that the real market traded through the price I would not get a fill. Thing is I had no proof of anything as I was not even in the office but CMC's own chart was showing it had traded through as well. I have noticed this sort of thing a lot when I am trading on the less liquid products and it does make me suspicous that they are deliberately screwing me. Fortunately I only trade small through SB's and find it a great way to get into a lot of markets in order to keep in touch with them and so better time my entry into the real future in larger size.