VERY Abnormal Spread (Japan 225)

Hi, @David please could you help me. I have traded Japan225 for approximately 2½ years. On Friday 27th November there was a very abnormal spread which was not reflective of market conditions or on other trading platforms.

Whilst I am aware that the floating spread varies in volatile conditions this situation was beyond this. Usually the spread for Japan 225 is 40 Yen however recently due to increased volatility the spread has varied between 40-80.

On friday 27th November the spread increased by 900% to approximately 340 YEN. This was NOT reflective of the market and occured just prior to the closing of the market in which all my positions were automatically shut. When the markets reopened the spread immediately returned to its usual spread therefore in essence my positions were shut for no reason but due to a ‘technical error’ on the trading 212 platform. As a result I lost a large chunk of money.

I have emailed the support team but its been a week and still no actual response. I feel as though this money was stolen from me and believe I should be compensated (refunded) or my positions being reinstated. Below is a screenshot of the abnormality in spread.

If anyone else has experienced a similar incident as extreme as mine and have had it resolved please could you inform me. Hope you can help thanks.

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so is it June or November?

This happened in November (Last week)

I checked the charts and it seems while the tick volume is low it records it as closing at 26,601. I can see the markers of the spread you are talking about. were you long or short the position?

market open and close do tend to see these sorts of issues a lot. Hopefully you can get a detailed response from support once they can respond to your email.

I have been trading these positions for over 2 years and I have never in the whole 2 years seen such an issue. This issue what not see on any other platform either.

I had multiple positions open some of which were long and some short. However, all of these were closed due to the massive abrupt spread.

Would you have any idea how long it would take for the team to respond. It has been a week and still no outcome.

Also would it be possible for the positions to be reinstated?

a week is still on the short end for some requests unfortunately, there are just so many and have to be handled chronologically. Everything is determined case by case, so I can’t speculate on how things will be handled, but I think positions themselves can’t be reinstated, you would have to make new ones.

If the system was at fault then the team will reach out to you to sort things out. It might be another week or two, possibly even sooner.

@Tony.V might be the person to reach out to if @David or another @Team212 staff member can’t help you or the email response is not helpful.

Thank you, in regards to what I have mentioned and the screenshot shown would you consider it to be a system error?

Thank you for the further support with @Tony.V

I couldn’t say as it’s too far back for me to use the minute charts for the 27th and I don’t have any deeper access level information, sorry.

Would you be aware of situations similar to this in the past?

I’m not really sure how those indices work. Is it some sort of contract rollover?

Yes so it rolls over similar to oil and gas

@trader041 Unfortunately, there was a significant increase in the underlying base spread just prior to the session close.

Still, could you direct message me your trading account’s email address so I could have a look?



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Thanks for the response. In the above screenshots the spread shown is approximately 190 yen. The spread on trading 212 was approximately 340 yen.
This was not seen accross other platforms either?

Trading 212 had offered a reimbursement which is approximately 5% of the losses incurred. Would you deem this to be fair?

From my point of view, I wouldn’t consider it fair but they seem to only base their pricing on Bloomberg. That thing proved unreliable time after time again, I watch the community quite often and it caused multiple similar situations. I’m not sure you can hope for much more, normally, if you can prove that only their platform had an anomaly, they should reimburse you. But they can claim it’s Bloomberg’s fault (which is true, maybe they should price their instruments from multiple sources?), so they might not offer much more on top of that…

I just checked another broker and the price is pretty flat at that point in time, on both the sell and buy charts so no stops were triggered there. It is definitely something wrong with Bloomberg as it can’t get their pricing right sometimes.

I hope you will get a higher reimbursement. :slightly_smiling_face:

Thank you for your response. I fully agree with you! Ive had a look accross numerous brokers aswell and still cannot see the large spread witnessed on trading212.

I have sent another email over explaining how the basis of the calculations of the reimbursement were not fair. The reimbursement was based on the closing price and the current market price. However, obviously this does not fix or recover the losses that I incurred as a result of the spread.

Thank you for your wishes.

I am a bit curious though, did they margin call your account as that spread occurred and closed all your positions, or did that spread trigger your stops?

I’ve got a verified account with T212 for some time now, but each time I decide to deposit, something comes up. Either their platform crashes and lots of people end up being unable to sell and demand reimbursements, or they mess up the charts (like they did when they switched indexes to the future contracts), or something else that makes me change my mind.

Yes so the margin on my account was about 35% and I did have an equal amount of BUY positions to SELL positions so the funds in my account remained the same regardless of whether the market went up or down.

When the spread occurred it caused the funds in my account to drop below 25% hence why all positions closed. I did not have any STOP loss or TAKE profit actions active.

To be honest based on what I have been through I would avoid the platform for now. The service team have been quiet slow which is understandable during these times but the responses have been terrible. And like you said they did have a massive error when the rollovers occured but they fully reimbursed me for that.

Interesting, thanks for sharing that! I do hope T212 will make things right and reimburse you a reasonable amount. All the best!

Appreciate it… lets hope so too

If you’re talking about CFDs then there is no point comparing spreads with other brokers as every broker will have their own methodology for calculating the CFD spread (which in turn is only partly related to the underlying stock price).

Of course if you’re finding the CFD spreads too high then your only real recourse is to move to a different CFD provider.