Hi, Hope someone can advise on this please. Yesterday afternoon (16:24 GMT) trading was temporarily suspended on Cineworld CFD. It happened just as a rather unusual pump was happening. The price jumped up significantly and I anticipated that it was likely to be a brief rise since it was entirely contrary to the prevailing market direction. I increased my SL to accommodate the rise. It rose a bit further and when I tried to increase my SL a second time I got a message on screen saying the instrument had been temporarily suspended and to try again later. This was 6 minutes before market close and the suspension continued until close.
When the market reopended my SL was instantly triggered. Soon after, as expected, the price dropped back down. So I lost money due to the suspension. Do I have any grounds to request a refund of that money or is it normal on this platform that markets can be suspended at any moment without explantion?
Hello! The reason for suspension of the mentioned instrument is the lack of quotations at the moment that you’ve pointed out (16:24) GMT. We have a mechanism which suspends every instrument with lack of new quote (which differs from the last one received) for several minutes. It prevents wrong execution & keeps healthy trading conditions. From the other hand, the period right before the ending of the session is related to low volatility and huge price discrepancies.
In a nutshell, modifying an existing order & placing a new market order while the instrument is suspended is unavailable.
Thanks for the explanation Martin. I’m inferring from what you’ve said that I’ve no recourse to recover my loss and that if I continue to use the platform I need to bear in mind that the service can stop working at any moment. Is there some mechanism by which I should have been able to see that the state of the market was primed for T212 to suspend trading on that instrument? If so I’d be sure to check that in future to try to avoid similar occurrences.
Ok, thanks Martin. I’ll try to familiarise myself with how to determine the liquidity of an instrument at any given moment. I’m guessing it’s a basic, routine check that traders need to do prior to opening positions since it can have such a big impact on success or failure. I’m no expert but I’ve been trading for a few years now and have never heard anyone mention it before. It seems like a valuable lesson.