I am very new here and about to open a currenex account with ADM. I plan to do high frequency trading (scalping) with up to 50k funds (* leverage).
I am aware of the risks market poses and have no general issues with that but while reading this forum I found several references to potentially fatal problems with the currenex platformt:
1) Huge slippage for @MKT price orders, this is when your order gets filled with +/- 30 pips (some reported it to be up to 130 pips).
Is this still happening? How is it called in professional terms? How can a trader protect himself in such case (besides not trading @MKT at all)?
2) Bank reversals. How does this happen? I mean imagine you open a position, close it and then, sometimes later bank reverses one of the trades, leaving you with open position again????
What is if this happens 5 hours later when your newly reopened position lost 400 pips to the market???
Are there other "underwater stones" I should be aware of?
OK, after reading some more I understood that the slippages in orders might actually be normal market mechanisms, although this is still very hard to believe in 200 pips slips as I read in some other forums / threads.
Is it more or less safe to assume that under normal market conditions major (10+) slips should not be an issue?
And, isn't currenex platform by itself come with "ESP Protection Alert" feature to prevent exactly that scenario?
I am still not clear regarding reversals, can bank reverse your position even after it gave you a fill or does the term reversal "just" means not honoring the bid/sell offer placed into the market?