Warning from Oanda to its traders, What is going on this weekend?

[gmst]

Quote from cornixforex:

Would be true in my case, because I basically scalp the market and almost always enter/exit with MKT orders, nobody except me and Heaven knows when and where exactly, plus EURUSD is fat enough to not bother too much about someone else to piggyback trades.

But if some successful trader uses swing-trading strategy for relatively low volume stocks and enters orders in advance, that can become an issue and in this case I would be very paranoid about the broker.

Thx v much. I see now that entering orders in advance would be an issue if you are doing strategy automated trading. Best to send orders when price is very near to your limit order. That is something that didn't cross my mind before. However again this precaution is not needed if you are executing 100s of orders every day.

 

[cornix]

Quote from gmst:

Thx v much. I see now that entering orders in advance would be an issue if you are doing strategy automated trading. Best to send orders when price is very near to your limit order. That is something that didn't cross my mind before. However again this precaution is not needed if you are executing 100s of orders every day.

Yes, my point was more than almost any case with 3rd party involved carries some risks. And risk of companies like Oanda doing something shady is actually not much higher than risk of something shady in the case of trading stocks.

But as Raegan said "trust but verify", so I compare Oanda quotes and executions regularly with a variety of other FX feeds and must say that never got hit byt the "back tick", which would make me suspicious of stop hunting etc.

Yes, they widen spreads around news, but it's wise to not gamble the news anyway and combined with tight spreads, no commissions and no slippage it's still good service and I'm not sorry that preferred it over 6E (though I often have 6E platform open just for the case).

 

[cornix]

As for stock traders, the beauty of many strategies is "set orders and forget it for the day" feature, which would be negated by waiting and only entering limit/stop entries right near the mkt.

With the mobile technologies now anyone with a smartphone and access to broker's order book can easily copy and even front-run those pre-set orders.

Illegal? Yes, but thinking that something being illegal ever stopped human greed, especially when chance of being caught is pretty low makes me laugh.

 

[Rationalize]

Quote from BlueTurtle:

Interpretation:

Dear horrible traders, we love your commission and would not like to see you all blow up this weekend. There is a chance, if we let you trade, you would blow up so bad we would actually have to ask you for more money...which you likely don't have.

Please for the love of all things good in the world, don't trade.

maybe, from now on, with very, very low volatility, try to immediately buy the ask and sell the bid a few times a day. you will not lose as much, and we will make much more.

thanks, but this is a win-win

+1

Required reading for new punters.

 

[NetTecture]

Quote from cornixforex:

Theoretically yes. But practically nothing will stop some guy @ brokerage firm who has access to orders of clients to copy trades of highly successful traders through his iPhone on his granny's account on massive size, which can matter pretty much, especially on less liquid markets like some stocks.

Ah, no.

First - you know - only very few people these days CALL - it all happens automatically. I would like to see your broker being faster on his phone than his firms automated order execution system.

 

[cornix]

Quote from NetTecture:

Ah, no.

First - you know - only very few people these days CALL - it all happens automatically. I would like to see your broker being faster on his phone than his firms automated order execution system.

Sure. But don't some people at the brokerage firms have access to the book of resting orders in the system?

 

[50/50]

Did anything bad happen? Is the warning over now?

 

[cornix]

All is fine, Greek voted for bailout, world is now safe, global economic crisis is over, thank you everyone.