Swap times - stopping me out of working trades

I’ve recently been trading Forex on the CFD platform. However, a number of my trades have been “stopped out” because at 9.00pm GMT the “Swap Time” causes a sudden spike down in the price. These spikes are only appearing on the T212 platform. When compared with “real world” Forex charts, the spikes are not present.
In every other aspect, I love this trading platform but I’m considering going elsewhere because if I leave my positions open past the “Swap Time” I risk my trade stopping out, even when the Stop Loss has been quite wide. The only other solution I see, is to manually move my stop to a “safe distance” before the swap and return it immediately after the swap. But this isn’t always practical. I have no issue with paying the interest that the Swap Time is there to apply, that part is fair enough, but the consequences are that I have lost out on what would have been several profitable trades because of this practice.
Has anyone else experienced this? Is there a more practical way to safeguard against unnecessary stop outs at “Swap Time”?
The cynic in me might conclude that this is a neat little trap to turn otherwise profitable trades in less profitable or losing trades. Is it necessary? Perhaps someone from T212 can answer that here.

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Have you got a screenshot of the spikes?

Hi, here’s the most recent example (EUR/GBP 25th June).
The graph with the spike down is taken from the Trading 212 platform. The other graph is from Tradingview but I’ve also compared it with other FX brokers and there was no spike. I’d been in this trade (long) and was in profit. I had moved my Stop Loss to below the low of the day at 0.90000 but the spike went to 0.89980 and the trade Stopped Out. It then went on a steady rise over the next few days and would have been a good trade. However, what it did afterwards is not the point. I’m more concerned with why T212 has these trade stopping spikes when other platforms do not.

This is just the most recent trade that I was stopped out of for this reason but it’s happened to me on three occasions over the past two weeks. You can also look at any chart for any currency pair and you will see that there is often a similar spike to be seen. I’ve looked at other brokers, in particular “FX Choice”, although they also have a CFD platform for Forex trading, they don’t have this same “Spike” situation at 9.00pm GMT every day.

According to the thread below these price spikes are supposed to be filtered out.

As the admin @David mentioned in that thread:

Maybe he can have a look at this.

It would be interesting to know if anyone has actually “Taken Profit” on a short trade because of one of these downward spikes. We only seem to be hearing about people who are getting “Stopped Out” of long trades and therefore losing money, or at least not realising the profits they should have made. But then again, I’m sure that anyone making a sudden large profit is not going to be motivated to post a message on the forum asking “what the hell is going on?” :wink:

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Here’s another one, from last night at the “Swap Time” on the CAD/CHF.

The spikes seem to vary in size from day to day but this one is around 40 pips. Enough to Stop Out a lot of trades. Again, no evidence of similar spikes on other platforms. The ‘filter’ does not appear to be working.

Going the opposite way for me lol.

Anyway I’m not a forex expert, hopefully somebody clears it up soon.

Just checked your 25th June spike on ERU/GBP. Same thing, it’s going the opposite way for me.

Are we in different time zones maybe? I’m GMT.

@Team212

I often wondered if we are all seeing the same thing. I’m in Germany but the time should have no significance, we all should be trading the same price. How strange that you get the same size spike but in the opposite direction. How can this be explained…Trading 212…anyone?

I’ve worked out why we’re seeing different things. On your “Chart Settings” you have checked “Buy Price Chart”, when this is unchecked the spike is shown in the opposite direction. I think this means the spike is in both directions and would therefore take out both long and short trades.

Yes my charts are always buy price.

…and another thing…
If the only way to avoid getting tagged by these spikes is move or remove the Stop Loss for the period around the “Swap Time”, it’s not always possible to place the Stop Loss back where it originally was, meaning there is an added risk of losing more on the trade than your strategy had initially planned for. By law, T212 have to place a warning on the website and any adverts, declaring that trading CFD’s is risky. It’s all BS because there is clearly unnecessary extra risk built in to the T212 platform that does not appear on many other platforms.

Ok. I’ve just been taken out of 2 trades where I had moved my Stop Loss to what I thought was easily a safe distance, based on the size of previous “price spikes” at the “Swap Time” (9.00pm GMT). Not only that, I placed my “Take Profit” very close to the current price and watched in real time as the downward bar (it was a short trade) extended way past my “Take Profit” point without triggering it. Only for the “Stop Loss” to be triggered a few seconds later buy the smallest of margins. I am now going to make an official complaint about this to Trading 212. Whether or not there is something buried in the T&C’s that attempts to justify this, it obviously isn’t playing fair and I feel like money has been stolen from me, not only this time but previous similar situations. It basically means that to “stay safe” one should either close the position before “Swap Time” (probably a contributing factor to the crazy price fluctuations) or remove the “Stop Loss” completely, which is very bad trade management not to mention incredibly risky. Again, comparisons I’ve made with other platforms shows that this only appears to be happening, to this extreme anyway, on the Trading 212 platform (comparisons below). I’m posting this here and elsewhere because users of this platform should be aware of what is happening and take action accordingly. How many times have I woken up to find a trade had “Stopped Out” without really investigating it too deeply. This time it happened in real time, before my own eyes.
Here are some screen grabs to draw your own conclusions. Unfortunately, when the T212 system closes the trade the information on the exact time of the “Stop Out” or the exact price my “Take Profit” was set at, were removed and no longer available to me. All I know is that my “Take Profit” was at around 20€ and the “Stop Loss” was at 180€. I’m not being a sore loser here, I’ve lost many trades and much larger amounts than are concerned here. In this case there is a principle of fairness. If I trade against the market and I win or lose based on whether I have analysed the data correctly, or not, then I’m prepared to accept the result.

I haven’t worked out if its possible to view both “sell” & “buy” charts simultaneously on T212, so I have put one above the other to show the range (159 pips) between the high and the low at the point when the trade “Stopped Out”. You can also see that my “Take Profit” should have triggered on the previous bar.

Same thing also happened with the CAD/CHF but I’ll just stick to the one example here.
Here’s also a screen grab of Tradingview. Again, no such fluctuations, in fact no upward movement at all.

It’s possible to have two charts of the same thing side by side. Open two of the same currency, set one as buy, one as sell chart, then press this button

image

You should have something like this:

Ah, yes…good thinking :thinking:
It’s been a long and not very profitable day.

I dunno why nobody’s answering. Try in the Help forum. Better chance there I’d say. I’ve seen them come back with real prices that show the spread can actually be insanely wide. Could be that.

I’ll do that. It could be argued that the spread was wide, to say the least. There’s no question of that but I suppose my point is that this doesn’t appear to happen like that on other platforms. Also, I was actually watching this one in real time. When I saw the red bar extend down way beyond my “Take Profit” and nothing happened, I thought “Hmmm, that’s odd”…and then about ten seconds later, the notice confirming the “Stop Loss” (which was set almost 10x further than the TP) had been triggered came up. My blood began to boil at that point. Looking at both charts (buy price and sell price) afterwards, the TP should have been triggered before the SL. Smells fishy.

The spread is just very wide during the most illiquid minutes of the session, around 22:00 GMT+1. We’ve reduced the occurrence by a fifth but still working on filtering them out completely.

If you want, we can provide screenshots from the Bloomberg Terminal that prove these prices are real.