AUD/CAD move yesterday burnt my account

[itradeforex]

Yesterdays sharp move in audcad wiped out my entire account. Though it seems like i was also at fault by trading 50 lots in one go but i just fail to understand how yesterdays move wiped out 74k from my account. I have been with Octa fx past few months. things were fine to the point i nvr had to complain about anything. I woke up yesterday to find out that my account is zero. I fail to understand how can the spreads widen so much that they blow your account with hedged positions. I know my brokers scammed me. Can the senior members explain how I can figure out whether it was my broker or the spreads actually widened to kill me

 

[minwa]

Yesterdays sharp move in audcad wiped out my entire account.

Nothing sharp about yesterday's move. It was smaller in range than days of last week.

Though it seems like i was also at fault by trading 50 lots in one go but i just fail to understand how yesterdays move wiped out 74k from my account.

Yes you are at fault, you have business over leveraging when such a small move wiped you out.

I have been with Octa fx past few months. things were fine to the point i nvr had to complain about anything. I woke up yesterday to find out that my account is zero. I fail to understand how can the spreads widen so much that they blow your account with hedged positions. I know my brokers scammed me. Can the senior members explain how I can figure out whether it was my broker or the spreads actually widened to kill me

Will need your trade log. "blow your account with hedged positions" Can you explain how your position is hedged ? Spreads in these FX CFD retail brokers are widened all the time, especially during events/releases. Despite what they advertise as ECN/Interbank these days, most of them are BS you are trading in their market and it is absolutely to their own profitability to squeeze you out. I wouldn't call it exactly a scam because it's exactly what you put your signature to allow them to do it when you open your account.

 

[Kryzz]

Nothing sharp about yesterday's move. It was smaller in range than days of last week.

Will need your trade log.

I would be curious to see this too..it looked like yesterday's range was only 60 odd pips with 50 lots that would be approx $505 per pip there must have been a spike at least double yesterday's range to take out your stop or have your position closed due to margin requirements.

Unless I'm missing something obvious

 

[Wysiwyg]

Position size correctly. See my sig. Oh, and run from glamour. It just isn't real. 2 x

 

[Wysiwyg]

I wonder if he is he saying there is a bottom in on the hourly?

 

[Kryzz]

I wonder if he is he saying there is a bottom in on the hourly?

Maybe!.... Although I'm still trying to see the logic of going long 50 lots at all in the past week, let alone an hourly, especially after this big reversal bar

 

[Wysiwyg]

Maybe!.... Although I'm still trying to see the logic of going long 50 lots at all in the past week, let alone an hourly, especially after this big reversal bar

Looks like your buy was triggered on the AUD/USD. It is trading at near 0.7391 now. Are you taking $1 pips or does it vary with stop location.? Off topic but thread starter has probably left the stage.

 

[Kryzz]

Looks like your buy was triggered on the AUD/USD. It is trading at near 0.7391 now. Are you taking $1 pips or does it vary with stop location.? Off topic but thread starter has probably left the stage.

Pip value will vary dependent how wide the stop is, rounded down to the nearest micro lot / $1,000. I use http://www.myfxbook.com/forex-calculators/position-size for all position sizing.

Yeah the AUDUSD & AUDSGD orders were triggered earlier, hoping for a reprieve in some of the Aussie based pairs.

 

[ThePiptaker]

Yesterdays sharp move in audcad wiped out my entire account. Though it seems like i was also at fault by trading 50 lots in one go but i just fail to understand how yesterdays move wiped out 74k from my account. I have been with Octa fx past few months. things were fine to the point i nvr had to complain about anything. I woke up yesterday to find out that my account is zero. I fail to understand how can the spreads widen so much that they blow your account with hedged positions. I know my brokers scammed me. Can the senior members explain how I can figure out whether it was my broker or the spreads actually widened to kill me

Ouch at what time did you get stopped out? At the daily rollover end of FX trading day 5pm New York time there is a period of no liquidity and spreads widen hugely during this period and will take out any stops you have.

 

[Valued]

Guaranteed stops arn't that bad if you only execute say one big trade every few weeks. They wipe you out if you are a day trader though since you can't afford them since the spread is consequently too large. You probably don't want to put yourself at risk of losing your entire account but if you can't help yourself at least get a guaranteed stop option (switch to IG if your provider does not have it) since at the very least it stops you going bankrupt and also if it helps you sleep at night it can be worth it for your health (do the maths though to see if it's even viable and you can afford it though). The Average True Range may be of assistance as well, but it is just an average.