first time today.. question
- Thread starter cornelius
- Start date
If you were trading the EUR.USD, today was not a normal day. After a long, accelerated run up in price, the spreads widened and the market was moving quickly as the price was pulling back. ECN spreads were wider than normal, as were the spreads in some of better dealing desks (like OandA, which was double or triple its normal 0.9 pips in the EUR/USD). You can tell when news or high volatility comes up as the spread just gets wide. Almost all trading platforms that I know of are color coded to hightlight this. It'll be a good thing to watch going forward.
The moves were quicker today as well. Some very large bars got painted very, very quickly.
All that said, 41 pips is too much slippage. It sounds like routing was your culprit.
Also, just as a suggestion, I'd prefer to always use limit orders to enter and exit positions. Even if I cross into the book with a limit that's 5 pips beyond the best bid or offer, it does help prevent getting that terrible fill in fast markets.
Far less liquidity on IDEAL than IDEALPRO so the spreads are much wider hence you can't hit the bid/ask and expect a good price. It matters...
yes, it should, read how IB forex works, you should have known this ! If you want to trade use big enough size to use IB Idealpro so you won't have this problem. It did 90 trades today, I had a few with 5 pips slippage, which is extremely unusual for IB. 2 pips slippage is rather unusual too for IB normally but happened a few times too today.
This is what is called tuition. 40 pips is painful but I'll bet you never make this particular mistake again. You'll make more mistakes as you learn, as we all do, so just mark it up to education and try not to repeat the same lessons as you progress.