Liquity sqeeze on my usd/sek trade!

Discussion in 'Forex' started by Nashequilibrium, Oct 24, 2008.

  1. So, i assume that my stop loss has covered me, i wake up to take a pee but say let me just check whats up for a sec and then i see sek has blow past my stop loss which was a market order. I try and exit manually but can't. I called the broker and there is no liquidity, he finally got me out at 1029pip loss. That resulted in a 1.8% loss, so i was a bit pissed but happy that i got out.

    I am looking at the action right now and usd/sek has lost even more value. Looking to long it but afraid of the liquidity levels. Is anyone else having liquidity issue on emerging market pairs?
  2. Hehe,
    no disrespect, but where are you from?

    I wouldn't exactly call Sweden an "emerging market." :D

    However, currency markets show more illiquidity and scarcity right now - but there are strong financial mechanics involved making the bulk of the moves.
  3. Yes liquidity is tough, there also seems to be a lot of slippage around but the high volatility makes up for it though as well as the spread increases. The exotics seem to be giving the best value for money in these trades, but then again overall for the last 5yrs they have been higher alpha generators.
  4. Some spreads are completely wild just now - especially on Yen currency pairs - and I just got shammed on a small scalp here by "latency" from my broker - a +30pips profit was turned into a small -2pips loss. Better be extra careful today :)

    Updating -- after another scalp test it seems that if I trail a stop they will hit that stop with some overshooting ... nice. Hmm, will just need to take that into account.