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I did a mistake just now and bought 2000+ pip difference USD/RUB. (I tought Its 2.0 but 2,0) I can't contact to forex office because its 2 AM here. now It shows 5k+ USD loss. I am in panic right now. It shows I bought at 40.80 and now 38.67 I meant to buy at 38.67 but It was spread difference.

Will my money back when spread calms down?

edit : spread seems getting calm down slowly, now 770pip and my loos down to 2k USD. I HOPE It will be normal and I will get my money back :/

edit2: I end up with 1200 USD loss and did close the position. I did contact with broker they told they will try their best but after some hours they called me with bad news. :(

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closed as off-topic by Matt, olaker Oct 13 '14 at 19:26

  • This question does not appear to be about quantitative finance within the scope defined in the help center.
If this question can be reworded to fit the rules in the help center, please edit the question.

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    $\begingroup$ This question appears to be off-topic because it has nothing to do with Quantitative Finance. $\endgroup$ – olaker Oct 13 '14 at 19:26
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If you're asking if you'd get your money back when spreads subside, you are basically asking [or hoping] whether the position will move in your direction. The short answer is probably yes (this pair has been in an uptrend for years), I would bet on up rather than down.

enter image description hereHowever, this might not occur quickly enough, i.e. before you have to liquidate or lose your nerve. Have you been demo-trading this platform and this pair enough, before committing live funds? I suspect the answer is no. While there are obviously important differences between live and demo accounts, the latter have a lot to offer: tuition-free trading education! Take advantage of this opportunity thorougly. While it might not be enough (and certainly demo success does not ensure live success), it has huge value. For example, it might have prevented this incident, saving you USD $1200 in the process!

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  • $\begingroup$ I am not a forex expert, is he long or short the USD (vs. RUB)? $\endgroup$ – emcor Oct 13 '14 at 18:50
  • $\begingroup$ looks like he said he bought $\endgroup$ – rupweb Oct 14 '14 at 10:15
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The trade cannot be made undone, you can at best sue your broker for not correctly informing you about the "2,0/2.0" notation.

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It can be undone if you negotiate with the broker. There may or may not be a cost depending on how the broker manages their RUB book. That depends on (a) if they make their own prices, or (b) if they have a price provider whether (i) they cover their client positions immediately, or (ii) they build small client positions and cover later.

Well, in this case you made a mistake (right or wrong) in the spread.

The cost of unwind is nothing if it's (a) and they make their own prices, because they simply give up the profit they would have made from you. If its (b)(i) then they can reverse their position at a more favourable spread than the spread you're given, but there's a cost for them. If it's (b)(ii) then they may be able to simply cancel your position at no cost, again giving up a hedging profit.

It depends if they want you as a repeat client. In the interests of the long term relationship with you they ought to undo the trade.

EDIT1: on further questions it depends on the broker relationship with their own providers, and whether they can persuade their providers to unwind orders, positions or trades that result from a client mistake...

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  • $\begingroup$ I strongly disagree with your point. Many (if not most) currency retail brokers are unregulated and make no qualms about it. If someone funded accounts with them and got their .... ripped wide open then it is mostly the fault of the investor/"trader" because he/she signed contractual agreements. Even the most unethical brokers legally protect themselves by including contractual clauses that provide for the fact that investors agree with the price feeds and hence spreads they execute trades on. One can try to claw back money but the emphasis here is on hope rather than any certainty. $\endgroup$ – Matt Oct 13 '14 at 9:57
  • $\begingroup$ Why do you think it can be undone, has it ever happened to your knowledge? Once my broker had an IT failure but they didnt refund anything because they said they might get sued by other customers for same treatment, and they are fully legally protected against any bugs and such. $\endgroup$ – emcor Oct 13 '14 at 18:33
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    $\begingroup$ @matt well there is a trade off between the long term client relationship. So yes, in the retail world, perhaps you're right, but in the wholesale corporate / high net worth world then the long term relationship is worth a lot more than the cost of unwinding a mistake for a client. $\endgroup$ – rupweb Oct 14 '14 at 10:13
  • $\begingroup$ @emcor, you can unwind anything. Particularly if you make the market price yourself and haven't covered the client position. But let's say you don't make the market, then it still depends where you get your price from and how you cover. The chances are your broker could, if he wanted, unwind any positions he has with his price or hedge providers, as a result of your trade executions. It then depends on his relationships with his providers. Once his providers unwind, then he can unwind with you... $\endgroup$ – rupweb Oct 14 '14 at 10:16
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    $\begingroup$ @rupweb, the scenario, outline by OP, clearly indicates were are talking about a retail broker and quite a shady one to say the least. If they already engage in keeping such pitfalls open for clients to fall into then chances are very high they are unregulated to start with which means they do not see a reason to let the client off the hook given such shady technique netted them money. An initial loss of 5k is way enough for most such brokers to justify ignoring the client's request. Just my 2 hunches but this question actually does not belong on this site. $\endgroup$ – Matt Oct 14 '14 at 10:20

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