Trading Execution Risk

Global Seek Limited (hereinafter referred to as GSTrade), which provides investment services related to financial products, discloses transaction execution risks related to the provision of investment operations related to financial products.

Slip

GSTrade aims to provide its customers with the best spreads and to be able to fill at the rates ordered.
However, in situations of high volatility, we may not fill at the rate you ordered.
Strong market movements can lead to significant price volatility, which may result in unfilled orders. In addition, when the market is volatile, an order may be filled at a price different from the price at which the trader placed the order. Similarly, slips can also occur when volume increases and there is not enough liquidity to execute all trades at the rate ordered.
Slips also occur in the stock and futures markets and are not unique to forex margin trading.
The GSTrade platform allows you to set a slip tolerance.
If you do not allow slips, your order will not fill at any price other than the price of your order.
To increase the fill rate of your order, you need to increase the slip tolerance.
Example: If you select a slip tolerance of less than 2 pips, your order will only be filled if the price fluctuates sharply when you place your order.
GSTrade transacts with some of the finest banks in the world.
In addition, since we have transactions with multiple banks, it is difficult for spreads to spread even in the event of sudden price changes.

Delay in execution

Due to communication with GSTrade, there may be a delay in executing orders.
To prevent such a delay, it is recommended to use a wired computer instead of a wireless connection.

Spreads may widen

GSTrade tries to provide users with narrow spreads, but in the following cases, the spread may be wider than the normal spread.
Example: At a news event that causes sudden price changes in the market
It is important to note that there may be sudden price movements during news events.
It is also recommended to manage your own capital and effective margin even during normal times.

Hanging order

If you place a large number of orders at one time, the server may not work properly.
In this state, the purchase order is stored in the Orders window, the purchase order information is highlighted in red, and the status column shows either Completed or Processed.
Also, even if an order is fulfilled, it may take some time for the bank to confirm, and in the case of high volume transactions, pending orders may accumulate.
In addition, results may vary depending on the type of order.
If the order cannot be processed within the specified range, or if time has passed since the order was placed, the order will be rejected.
If the server placed the order at the time the order was placed and the price was at the time the order was placed, the order will be processed at that price.
In both cases, the status column in the orders window usually shows “run” or “process.”
Depending on the type of order, the fill may actually be fulfilled and the delay may simply be a problem with internet traffic.
Also, making multiple entries at the same price can slow down or lock your computer, or create unwanted positions by mistake.
To manage your account, please go to GSTrade trading platform. If you do not have access to the GSTrade trading platform, please contact us at https://gs-ltd.hk/contact/.

Gray out

GSTrade intentionally does not gray out prices, but may do so when liquidity declines.
Margin calls can also be made to a trader’s account due to price spikes or widening spreads.
When an order is placed for a currency pair affected by grey-out, the P / L will momentarily go to 0 and blink, making the pair a tradable price and allowing the system to calculate the P / L balance. Will be.

Reverse spread

When you use GSTrade technology, you trade at prices offered by multiple top banks and financial institutions.
Unfortunately, online trading technology isn’t perfect, and in some rare cases this price can be destroyed, so be careful.
This condition may last only for a brief moment, but sometimes the spread is reversed.
GSTrade reserves the right to reverse the spread associated with a transaction if it actually occurs at a rate not provided by GSTrade’s banks or financial institutions, as GSTrade does not consider such a transaction to be legitimate.

Trading desk hours

Trading hours are from Sunday 5:15 AM (est) to Friday PM 4:00.
In addition, it may be difficult to execute and execute orders, such as on weekends when business becomes light.

Price before opening

New orders cannot be placed during the time when the market is closed.
Pre-orders placed before the market closes will be executed at the updated market price before the market opens and new orders can be placed after the market opens.

Liquidity

During the first hours after opening, the markets tend to be thinner than usual until the Tokyo and London markets open, as most parts of the world are still weekends. Therefore, it may result in wider spreads.

Gapping

The Sunday open price may differ from Friday’s closing price, and there may be an opening between Friday’s closing price and Sunday’s opening price.
Traders with positions or pre-orders on weekends should give due consideration to the potential for gaps, as gaps can occur in the event of significant news announcements or economic events that change the way the market views. You need to put it.

Order execution

Most of the contracts are executed according to the order price, but if the order price is not in the market, it is not executed. Orders are often filled at the price ordered, but if the price ordered is not on the market, the order will not be filled.
When the price of the Stop Order ordered at the opening on Sunday is reached, the order becomes a market order.

Weekend risk

The market is very volatile on weekends, so we recommend that you avoid risks such as closing positions and reducing positions.
Traders who want to prepare for risk should close their positions before the weekend.

Margin call

GSTrade will let you know about margin maintenance rates before reaching the loss cut level with the margin call feature.
In addition, if the loss cut level falls below the alarm level, forced loss cut will occur.

Chart price list and prices shown on the platform

There are two things to note when checking the price list. First, the price displayed on the chart may differ from the price displayed on the quote. Second, there are indicators that show the price of the market and the percentage that the price changes, and market watchers such as S & P and eSignal say that the prices are different because they are collecting those indicators. That is. If you do not pay attention to these, you may incur unexpected losses.

that’s all
This content will be updated from time to time.
April 1, 2019