CFD Trading weird behaviour

M

mrjixies

Hi all,

I've done some trading in cfd's the last year and I primarily open positions in the dow jones.

On 21 december one of my positions was closed due to the stoploss and normally I dont pay attention to it but now it was a big spike in the chart downwards. And the bottom of the spike was right where my stoploss was. (I know this can happen) But just out of curiosity I checked with the regular dow jones data online and I saw there was no spike.

I compared it with a few others and again the data was way off with the data I have in metatrader. I checked the results and the difference was 400 pips! Now I understand there can be a few pips difference here and there on different platforms but this difference was huge!

So I contacted my rep at my broker (admiral markets) and they said it was something due to their liquidity provider and they didnt understand the problem. So I asked them again more elaborately but of course no answer any more.

My question is is this normal behaviour? That there is such a huge difference sometimes with cfd's and "real" data?
 
Guess why our trading session with AM starts 5 min later than NYSE opens.

I choose invest.Mt5 with no CFDs, despite of em trying to sell me otherwise.
 
The normal behaviour is reading the Terms and Conditions before sending any money and pressing colored buttons.

If you did you realized that you are trading against a single entity that can basically give you prices that they want. There is nothing that keeps them from pricing the DOW at 500 points if all their clients are long...which makes them short.

Lesson: If you want to trade "real" data, trade real instruments.
CFDs are for pickers, gamblers and idiots.
 
MrMuppet said:
The normal behaviour is reading the Terms and Conditions before sending any money and pressing colored buttons.

If you did you realized that you are trading against a single entity that can basically give you prices that they want. There is nothing that keeps them from pricing the DOW at 500 points if all their clients are long...which makes them short.

Lesson: If you want to trade "real" data, trade real instruments.
CFDs are for pickers, gamblers and idiots.
More...

I've read the terms and conditions. The reason I choose Admiral Markets is that they are regulated in the UK. And they practice STP so no market maker. I'm still making money with them for now, but I will keep I close call on my positions if it happens more frequently I'll have no choice but to look elsewhere I guess.
 
mrjixies said:
Unfortunately I dont have enough assets to trade with cme. Thats why I choose CFD's
More...
think about it this way:
why would you want to trade on the CME? Are there products you know so well that you can make money off of it?

If that is not the case, I highly suggest you look for niche product and familiarize yourself with them so much that you can generate P/L. THEN look for market access.

Don't work backwards aka. first broker, then market selection, then strategy.
 
I'm making money so that's not the issue, but if deliberately being "fooled" I guess I have to look into a different broker
 
botsmarok said:
I think you should wait for the broker’s response on this one. They can help you better with this query. Good luck.
More...

They havent any more, I asked again because the guy I was talking to was talking in circles. No response any more. So basically it's a F*U*

I'm currently looking for another broker. Let this be a warning for people who trade with Admiral Markets !
 
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