Stop hunt of 1,300 pips? Yes it’s a possibility. Lost 1,142.56 “possibly” due to such move. I cannot find any other reason to explain this away.
I am the type of person who does not jump to conclusions quickly. I wanted to give OctaFX the benefit of the doubt and not accuse anyone of highly unethical forex broker behavior but since the loss was big enough potentially result in the wipe-out of my account that it warranted several avenues of complaint other than my private complaint via e-mail and chat support to the broker.
In short, I need to have some immediate resolution on this matter, which is why I am taking this public and posting this in FF. Time is of the essence because I still have existing positions and orders which could result in big losses due to the current level of my margin.
Over the weekend I had an existing long 0.08 lot position on GBPCHF. Earlier today (or yesterday depending on timezone) at around 9:06pm GMT, August 5th, 2018, GBPCHF dropped 1,300++ pips, then returned to normal price levels, all in a span of one minute.
Here is their mobile ctrader chart in comparison:
Every other forex chart I examined did not exhibit the same movement. Charts such as
and the other numerous charts from other brokers did not show abnormal activity.
Even OctaFX’s MT4 GBPCHF chart exhibited nothing out of the ordinary.
Also, it can be concluded that a movement of such magnitude, 1,300 pips in 1 minute in GBPCHF, should affect all GBP and CHF pairs, however no such movement was recorded in other GBP or CHF pairs in Octafx ctrader. Not sure? Check out your OctaFX GBPUSD, USDCHF, GBPJPY, GBPNZD, GBPAUD, CHFJPY, NZDCHF or AUDCHF charts.
Finally, nothing in the financial market news indicated an event that caused a drop in GBPCHF of such magnitude to occur. Check it out yourself, http://www.financialjuice.com, 9am to 10am GMT, no news pertaining to GBP nor CHF.
Even David of OctaFX, chat support representative of OctaFX agrees with me:
Seems that this BIG, ALMOST APOCALYPTIC MOVE was only confined to GBPCHF. For reference, the Swiss Franc devaluation produced a 3K pip movement, while Brexit produced somewhere between 1K to 2K I believe, and Brexit was was not unexpected news too.
The most coincidental thing about this is, the movement happened to coincide with the pip distance of my STOP LOSS, which was set at 1,300 pips. If you notice the second top-most screenshot above, my position was closed at the tailend of the candle’s wick.
Happy coincidence? You decide.
To top it off, the move happened during a very odd time. Just 6 minutes after the markets opened today I believe. Right under everyone’s noses.
Now imagine 2 scenarios:
- What if that wasn’t an 0.08 lot position? What if it was 0.16 and above? I would have awoken to a wiped out account.
- Maybe if my SL was set at 3K pips, the move would have been 3K pips, not 1.3K, and people would wonder if SNB de-pegged their currency out of the blue, again.
Anyway, due to the unjustifiable and seemingly out-of-nowhere flash crash in GBPCHF, my margin level was reduced significantly, which put my current positions in danger of OctaFX’s smart stop out, and I presently do not have enough margin to proceed with further trades to regain my “unnatural loss”, and win further profits. As of now, my current positions are hanging by a thread just to survive. UPDATE: just now I deposited 400USD into my account (which I was hesitant to do because the playing field isn’t fair on this one, but I was forced to because my margin levels were low enough).
Given the above circumstances, I demand a quick and immediate explanation and resolution to this matter for the reason that, if my current positions get stopped out or close out in a loss due to lack of margin, it will be conclusively OctaFX’s fault and I will be entitled to not only a refund but lost trading opportunity income. Please act on this quick.
Also OctaFX claims to be an ECN account provider – they have charged me a total of 91USD for the past two weekends as a result of their weekly rollover ECN fee. Given this, I’m highly stumped as to how this could have happened and again, and I reiterate my demand for an immediate explanation.
I really hope there is a very good explanation, and this was just an honest but monumental mistake.