A Question about Spread

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Abigail Quigley
317
Abigail Quigley  
Who determines the spread? 
A little background to why I’m asking this question...
My account was in a terrible shape after loads of bad news on eur/usd I had it managed and hedged all of my trades to free some margin any time some profit would come I’d close some old trades and hedge again super dangerous trading I know but it’s all I could think to do to try and save my account in this situation my account drawdown was literally 98% but whatever way the market went it was balanced by buy and sell trades equalizing things however last night the spread widened to well over 50 pips and I got a margin call and all my trades closed before I had the chance to do anything about it. Now I know the broker isn’t going to say here’s your 11k back but I would like to know if it’s partly to blame the broker that the trades closed because I’ve been trading on that 98% drawdown for a few months and since July it’s been bad and I’ve managed it and I believe without this gap in spread I could have salvaged it so before I go using the same broker was it a problem with the broker or is this spread difference normal? And I will add I had a PRO account so I was paying charges on each trade and supposedly getting better spread which I’m starting to suspect is not the case and I thought I would at least be sent an email or alerted that there has been a margin call and to add funds but I wasn’t. Does this sound like a problem with the broker and I need to change or is it normal practice? 
Keith Watford
Moderator
18437
Keith Watford  

I don't want to kickanybody when they are down, but I hope that you have learned never to "hedge" again.

"Hedging" will leave you exposed when you have low free margin and the spread widens.

In future please just close the trade instead of pointlessly opening another trade in the opposite direction.

https://www.mql5.com/en/forum/167337

"Hedging" in Forex trading -Why do it?
"Hedging" in Forex trading -Why do it?
  • 2017.01.19
  • www.mql5.com
if I may offer my opinion..... Hedging is a method to limit risk. Consider this scenario...
Gianluca Bonfanti
1343
Gianluca Bonfanti  
Abigail Quigley:
Who determines the spread? 
A little background to why I’m asking this question...
My account was in a terrible shape after loads of bad news on eur/usd I had it managed and hedged all of my trades to free some margin any time some profit would come I’d close some old trades and hedge again super dangerous trading I know but it’s all I could think to do to try and save my account in this situation my account drawdown was literally 98% but whatever way the market went it was balanced by buy and sell trades equalizing things however last night the spread widened to well over 50 pips and I got a margin call and all my trades closed before I had the chance to do anything about it. Now I know the broker isn’t going to say here’s your 11k back but I would like to know if it’s partly to blame the broker that the trades closed because I’ve been trading on that 98% drawdown for a few months and since July it’s been bad and I’ve managed it and I believe without this gap in spread I could have salvaged it so before I go using the same broker was it a problem with the broker or is this spread difference normal? And I will add I had a PRO account so I was paying charges on each trade and supposedly getting better spread which I’m starting to suspect is not the case and I thought I would at least be sent an email or alerted that there has been a margin call and to add funds but I wasn’t. Does this sound like a problem with the broker and I need to change or is it normal practice? 
50 pips spread is insane. I have a pool of 12 brokers and i am monitoring spread every second. Max eurusd was 12 pips in all 12 brokers in the last weeks.
I am sorry but you was right the issue is in the broker for sure.
Catalin Zachiu
17910
Catalin Zachiu  
Abigail Quigley:
Who determines the spread? 
The broker did it , but they are doing it because of the high volatility . Look for a broker that charges commission instead of spread . 
Ahmad Zuhairdi Noh
7405
Ahmad Zuhairdi Noh  
Abigail Quigley:
Who determines the spread? 
A little background to why I’m asking this question...
My account was in a terrible shape after loads of bad news on eur/usd I had it managed and hedged all of my trades to free some margin any time some profit would come I’d close some old trades and hedge again super dangerous trading I know but it’s all I could think to do to try and save my account in this situation my account drawdown was literally 98% but whatever way the market went it was balanced by buy and sell trades equalizing things however last night the spread widened to well over 50 pips and I got a margin call and all my trades closed before I had the chance to do anything about it. Now I know the broker isn’t going to say here’s your 11k back but I would like to know if it’s partly to blame the broker that the trades closed because I’ve been trading on that 98% drawdown for a few months and since July it’s been bad and I’ve managed it and I believe without this gap in spread I could have salvaged it so before I go using the same broker was it a problem with the broker or is this spread difference normal? And I will add I had a PRO account so I was paying charges on each trade and supposedly getting better spread which I’m starting to suspect is not the case and I thought I would at least be sent an email or alerted that there has been a margin call and to add funds but I wasn’t. Does this sound like a problem with the broker and I need to change or is it normal practice? 

Spread is another ways of broker making money [1]. It is in their term and condition.

However,If your current trading style allow you to get a margin call even by small movement of spread,

you need to change the style. Lesson learned.

Abigail Quigley
317
Abigail Quigley  
Catalin Zachiu:
I’m paying commissions already I don’t know why it spread like that I’m baffled I have been monitoring this spread and wondering why at certain times (always during the night for me) that the spread widens like that I have screenshots of it too because the free margin goes so low when this happens this time it’s wioed out my account and yes I know I was dangerous with the trading but after that huge drop on eur/usd in July and some more drops I’m left with loads of buys and no stops I had to do that many mistakes from me but what’s annoying is that after all this time trading to try and save it it’s the spread that killed it off, it is an insane spread and I’m being generous when I say 50 pips because it could well be more like 50-100 
Abigail Quigley
317
Abigail Quigley  
Ahmad Zuhairdi Noh:

Spread is another ways of broker making money [1]. It is in their term and condition.

However,If your current trading style allow you to get a margin call even by small movement of spread,

you need to change the style. Lesson learned.

True, lesson learned for sure it’s not normally my style I didn’t actually know I could do that kind of stuff with the account but I had trades with no stops and then the news in July had this slump I waited it out and it got worse and worse so I started trading like a loon to try and save it, it was my trusted robot that got me in the trouble in the first place I turned it off during that drop and turned it back on and it just left the trades hanging I thought it would pick back up where it left off so I was doing it manually and it all went pear shaped so annoying the broker has done that 
Abigail Quigley
317
Abigail Quigley  
Keith Watford:

I don't want to kickanybody when they are down, but I hope that you have learned never to "hedge" again.

"Hedging" will leave you exposed when you have low free margin and the spread widens.

In future please just close the trade instead of pointlessly opening another trade in the opposite direction.

https://www.mql5.com/en/forum/167337

Thanks I will have a read of this link 
Abigail Quigley
317
Abigail Quigley  
Gianluca Bonfanti:
50 pips spread is insane. I have a pool of 12 brokers and i am monitoring spread every second. Max eurusd was 12 pips in all 12 brokers in the last weeks.
I am sorry but you was right the issue is in the broker for sure.
Would you mind to share those brokers with me? Looks like I should be trying a new broker 
NELODI
224
NELODI  

Actually, even with Brokers who charge commission and offer the tightest spreads, you can see the spread widen considerably when the market becomes highly volatile, which is usually around News and always around Session opening and closing times. It is not unusual to see the spread widen several hundred pips after the weekend or holidays. If you read the small-print, you will find that the spread advertised by brokers is only available "under normal market conditions", which means that there is no limit to how big the spread can get when the markets are highly volatile.

Oh, and ... the worst possible thing you can do if you see a trade going against you, is to start opening positions in the opposite direction to "hedge" your loss. Why? Because every trade you open is going to cost you broker commission, while at the same time locks your current profit/loss for the trade in the opposite direction, so ... instead of saving money, you are doing your Broker a favor by paying double commission on your losing trades. To make things even worse, you will end up with a margin call for the opposite side of your trade as soon as you close one side of the trade, because the margin that was made available to you by hedging will be gone.

Waseem Raza
10393
Waseem Raza  
Abigail Quigley:
Who determines the spread? 
A little background to why I’m asking this question...
My account was in a terrible shape after loads of bad news on eur/usd I had it managed and hedged all of my trades to free some margin any time some profit would come I’d close some old trades and hedge again super dangerous trading I know but it’s all I could think to do to try and save my account in this situation my account drawdown was literally 98% but whatever way the market went it was balanced by buy and sell trades equalizing things however last night the spread widened to well over 50 pips and I got a margin call and all my trades closed before I had the chance to do anything about it. Now I know the broker isn’t going to say here’s your 11k back but I would like to know if it’s partly to blame the broker that the trades closed because I’ve been trading on that 98% drawdown for a few months and since July it’s been bad and I’ve managed it and I believe without this gap in spread I could have salvaged it so before I go using the same broker was it a problem with the broker or is this spread difference normal? And I will add I had a PRO account so I was paying charges on each trade and supposedly getting better spread which I’m starting to suspect is not the case and I thought I would at least be sent an email or alerted that there has been a margin call and to add funds but I wasn’t. Does this sound like a problem with the broker and I need to change or is it normal practice? 

Any broker can wider their spread any time, and because of this low margin or  close SL hits, If you asking about top class brokers with best conditions then I'm sure that brokers not using MT4/MT5  but using their own platforms for trade but their trade conditions are best. 

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