REFCO broke my trade!

Discussion in 'Forex' started by dnaj65000, Oct 30, 2003.

  1. Hi all,

    I was all set to write a nasty message condemning Refco for running a stop, but it turns out that I'm praising their customer service and quickness in dealing with the matter.

    Problem was:
    Price spike down on the EURJPY at 04:40EST to a low of 125.83 hitting my stop at 125.90 from a 126.25 entry.

    All charts show no price spike:
    Metatrader low is 125.98
    S&PComstock low is 126.03

    However,
    Refco low is 125.83

    I went to their live help online and asked for a telephone number to speak to a live person. He asked me where I lived and I told him. He then gave me a toll free number to call. I called and the person picked up on the first ring.

    Me: I have a question about a stop on one of my trades.

    Him: May I have your account number please?

    Me: 123456789. Could you please look up ticket number 101347? It is a trade with the...

    Him: I see your trade on the EURJPY. It was a price spike down. Your stop was 125.90. I will put you back on long from 125.90.

    Me: 125.90? (I took a second to comprehend it) Yeah, that would be great.

    Him: It will be posted in your account in a couple minutes.

    Me: So it will appear in my account now?

    Him: That's correct.

    Me: Thanks.

    In about 1 minute, while I had my trading platform open, the position is back in my account and I'm back in the money like I should be if the price spike never occurred.

    High praise for their customer support!! I was ready to argue with him and ask to talk to his supervisor...etc but I didn't need to at all.

    One satisfied customer,
    DNAJ65000
     
  2. That is pretty damn cool. They even went the extra tick and put you back in at a better spot! :cool:

    -Fast
     
  3. Better spot, yes. But the net effect is zero since he has already booked a loss which is offset by the better spot.
     
  4. Yes, exactly. I take the 35 pip loss but I currently have an open position that is 35 pips more than if the stop was never hit.

    Hopefully they would correct such a trade no matter what size traded.
     
  5. badcat

    badcat

    This is the issue I have with these sort of brokers. I have been trading currencies for a couple of years now and they have also done this to me (ala FXCM). How many other traders have had their stop loss taken out and not complained.
     
  6. Right, Refco has the best customer support I've ever seen.
    It's highly recommended.
     
  7. bone

    bone ET Sponsor

    Maybe you're getting some of the trickle-down effect from their relationships with their primary customers - hedge funds.
     
  8. dnaj,

    may I ask how large the position was ?
    I would assume they do this with smaller
    positions, but you would have to argue
    if you go e.g. > $5M
     
  9. Would you please advise how you can check concurrently three charts on three prices from different sources? Are they varied very much usually or seldomly? Thanks!
     
  10. Quah

    Quah

    I don't get it - if there was a price spike down, and your stop was hit - why would they want to give you your long position back?

    Why would REFCO care what other "dealers" were trading at since there is no central market and their price is the "right" price no matter what other dealers are doing?

    Sounds to me like they knew they were screwing people by dropping (or letting it drop) that low - and that they wanted to hurry up and satisfy any complaints about it - while profiting from those who didn't complain. I guess thats what you get when your "dealer" always takes the other side of your trades.
     
    #10     Oct 31, 2003