Forex broker hunting

Forex broker hunting

2/28/ · This is true for regulated brokers in major financial countries. The only traders who complain about broker stop hunting are rookie traders who don’t have a proven trading strategy, and/or are using a shady broker. If you are using a super dodgy unregulated broker from a suspicious country, then you might see some abnormal price blogger.comted Reading Time: 6 mins 4/17/ · One way many traders think A-book Forex brokers stop hunt, is by widening their spreads around news. However, this is most often done simply because the prices quoted from liquidity providers reflect a thinning of the underlying market during these periods of unpredictable price blogger.comted Reading Time: 8 mins 2/20/ · What Is Stop Loss Hunting? As you know forex brokers make money when you take a position. They charge you some pips when you buy a currency pair. This number of pips that brokers charge when you buy currency pairs is called spread. Brokers offer different spreads for

Stop Loss Hunting By Forex Brokers and Professionals - Forex Training Group

Before reading this article please read another article I already published about placing the stop loss and target orders, and the way they have to be set properly, forex broker hunting. I just want to make sure that you know what stop loss is in details. Then we can talk about stop loss hunting easier: Where Is the Best Place for Stop Loss and Limit Orders? As you know forex brokers make money when you take a position.

They charge you some pips when you buy a currency pair. This number of pips that brokers charge when you buy currency pairs is called spread.

Brokers offer different spreads for different currency pairs. Spread is not the only way that forex brokers make money.

It is one of the ways that Market Maker Forex brokers make money. They also make money through swap. They can make money through the other ways, but they are not allowed to. However, whatever you pay as the spread goes to the market maker broker pocket. Additionally, the money you lose is the market maker broker profit because when you trade Forex through a market maker broker, in fact you are trading with the broker, not the real currency market.

So it makes sense if the market maker brokers like you to lose because your loss is their profit. However, some market maker brokers get greedier and want to make more money faster. Stop loss hunting is one of the ways they use to do that.

They have some special robots or hire and train some employees who monitor the clients trades. When a client takes a short position and sets a stop loss and the market goes against the position and becomes so close to the stop loss, the robot or the stop loss hunter employee increases the spread manually to help the price hit the stop loss sooner.

You have a short position and to close this position you have to buy. Your stop loss is always a buy order when you go short. You pay the spread only when you buy. You pay it when you want to close your short position you buy.

Back to the example. You have a short position at 1. The market goes against you and goes up to 1. As your stop loss is a buy order, then the number of the pips of the spread spread pipage has to be added to the market price.

If the result equals your stop loss value which is 1. It means if the market price plus the spread equals your stop loss level, then the stop loss will be triggered. What does it mean? Therefore, your buy price becomes 1. However, this is the opportunity that the scam market maker brokers wait for it. As soon as the market becomes so close to your forex broker hunting loss, the broker increases the spread intentionally.

So while the spread is 2 pips and the market is only 3 pips away from your stop, forex broker hunting, the broker adds at least 3 more pips to the spread to hit your stop forex broker hunting, and then lowers the spread.

This usually happens in less than a second. The broker increased the spread to pretend that your stop loss was triggered. Not all the market maker brokers hunt the traders stop loss orders. There are good market maker brokers too.

Therefore, before accusing the broker of hunting your stop loss, make sure that they have really did it. Unfortunately, it is not that easy to prove that the broker has intentionally increased the spread to hunt your stop loss. They are right. Forex broker hunting, it is somehow impossible to prove that it was the broker forex broker hunting increased the spread to hunt the stop loss, forex broker hunting, unless they do it by increasing the stop loss for tens of pips when there are no news release that causes the spread to go up suddenly.

Once a friend sent me one of his positions details. There was no doubt that it was a stop loss hunting attempt by the broker. When the broker does it stupidly, forex broker hunting, you can easily prove that it was a stop loss hunting.

Forex broker hunting it is hard to prove it when the spread is increased for a few to few pips. Manipulating the spread is the best and easiest way of stop loss hunting because it is hard to track, forex broker hunting, unless the broker does it very stupidly by increasing the spread dramatically, when there is no reason to have such an increase in the spread at that special moment.

It is only the price which is being recorded, forex broker hunting, forex broker hunting you use some special robots to record the spread on your own, forex broker hunting.

Some brokers are stupid enough to hunt your stop by changing the price. However, the broker can edit the price later and make it back to normal. But if they do it, you can easily say that there was no point to hit your stop loss because the price was far away. But why do they do it? If they let your target be triggered, your position will be closed and you will make some profit. But if they keep your positions open, forex broker hunting, it is possible that the price turns around and then forex broker hunting get the chance to hunt your stop loss and win some money.

They can do that if they want. They can increase the spread to any level they want. Of course, when the market forex broker hunting to your direction strongly they try not to do anything because it will look too suspicious and they get caught.

However, scam brokers increase the spread automatically through some special software or robots. It is not that hard to program a software to do all these things.

Start with a small account to test the water first. They can do whatever they want. The only thing that can prevents them from cheating their clients is that they really want to offer a good and honest service to everybody. The other way to forex broker hunting away from the stop loss hunting and all these kinds of problems is trading through a bank account.

Forex broker hunting more: Forex Trading Through A Bank Account. Trading the longer time frames is another way of staying away from stop loss hunting, forex broker hunting. In general, you will finally have to close your account and leave when you trade with a scam broker that hunts your stop losses and cheats, because nothing that fully stop them from cheating you, forex broker hunting.

Is this not the case? We cannot judge a broker as forex broker hunting broker who is fraudulent and not.

SIMPLE FOREX TRADING - WAIT FOR THE STOP HUNT!

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Stop Hunting With the Big Forex Players

3/31/ · Stop hunting is a strategy that attempts to force some market participants out of their positions by driving the price of an asset to a level where many have chosen to set their stop-loss orders 5/3/ · Even if you have a trustworthy broker, nothing can't be done about stop hunting (except maybe taking advantage of it), because the market itself goes for levels, where stops are congregating. Then of course there are shady brokers, who like to widen spreads themselves. Regarding stop losses, they are a must for controlling risk 2/20/ · What Is Stop Loss Hunting? As you know forex brokers make money when you take a position. They charge you some pips when you buy a currency pair. This number of pips that brokers charge when you buy currency pairs is called spread. Brokers offer different spreads for