Please don’t think I’m sick. I just feel that we need a losing trading day every once in a while to humble us up 🙂 Don’t you think? Feedback from trader: Many “off quotes” messages. “Off quotes” message also came up while trying to enter two trades that would have more than likely been profitable. Two losing day trades – one “off quoted” while trying to exit at a profit. Two straight “requotes” during final attempt to buy GBPUSD at 1.9006 and then 1.9009.
Click here for the trade log (in a new window).
In the log, you will find a high frequency of “off quotes” messages and 2 requotes. On many of these instances, the price does not seem to have moved by more than 2 pips since the order was sent (so reason #1 on 11/10/2006 cannot be used to properly explain the rejections).
Another thing that I do not understand is why the trader was requoted in his last attempt to buy 35 GBPUSD. The execution or rejections are supposed to be automated. The “requote” is something that is common when a day trader is on manual execution against a dealing desk, which is not the case here. In fact, he was requoted twice – back to back. Once at 17:52:10 at 3 pips higher than his initial buy order. When he accepted the requoted 1.9009 price, he got requoted again at 1.9013. It is true that the price was moving when the order was placed, but if the 2-pip deviation setting had been exceeded, why didn’t the trader get rejected with the “off quotes” message instead? Why the “requote” message? Click to see the chart showing this “requote incident” (in a new window).
After the “requote” incident above, the trader tried entering a short Yen position at 23:50:07 when the price was at 118.01. It took 11 seconds to get back a rejection with our favorite “off quotes” message. By that time, the currency price had moved considerably. Click to see the USDJPY chart snapshot of this (in a new window).
