Some answers from B. Varchev to client’s enquiries

An answer to a client’s email enquiry:

Hello Mr. AL......!

Al

With your permission, I would like to pose some questions…..

- Guaranteed official stop… if for you, there is one…. Shouldn’t be a problem, there to be one for the clients as well.

B.V.

…. I am not currently aware what you have discussed with Mr. Angelov (I will find out), but the guaranteed stop is a relic. And for “us” – there isn’t one, because there is no one who could offer it to us. Guaranteed stop, was once pre-paid. I remember it was something like $23 10 years ago. Personally, I have forgotten about this term for years because of the simple reason that this is not a market behavior. How will anyone be able to guarantee us a guaranteed price, if there isn’t one? I agree that it is tempting because it eliminates more serious losses but if anyone guarantees it to me, wouldn’t he …….. me in something else. In my opinion, this is a pure ruse.

AL.

- Forbidden slippage, in MT4 there is a square area with options from 1 to 8 pips… the unmarked zone of this area should protect us from slippage.

B.V.

I am trying to understand your question through logic. Without underestimating your knowledge, there is a regulated and an unregulated market. On the unregulated market /non-exchange/ market where 97% o f Forex Trade is included/, the slippage is a market behavior. In times of a strong price action movement, mostly in times of releases /news/ , orders are piled which exceed hundred times the volume for a calm market and they should be fulfilled in the same very fast manner. This is impossible – neither technically nor practically. The order enters for about 0.7 milliseconds and it comes back to you for about the same time, if you in BG or if you in GB where our servers are. From another country the speed is about 10 milliseconds. The enormous pilling of volume, even with our ultra modern servers/ I can present them to you with proud/ processing time is required.

It is the same picture with the regulated markets -on the floor of the market /where we trade/ and there the slippage is a market event but for another reason. Again the volume of orders submitted tickets exceeds multiple times the one in choppy markets but here the buyer should face the seller in reality and the vice versa but if one direction /let’s say sell/ orders are much more too many and we have released a sell ticket, our order will break into parts, as many as there are buyers, and they are few. And so our broken into parts order /nominally one/ is executed in parts, at a worse and worse price – slippage. In my opinion – if someone advertises to me no slippage, I will ask: “and who is going to pay – you the broker? – Yes” “NO, Thanks” – another type of a ruse. I apologize if I have been explaining elementary for you things, but my personality does not allow me there to be unsatisfied client “hanging on my neck”.

Allow me to proceed with the answers to your questions tomorrow as I am struggling to keep up…

Best Regards,

Biser Varchev

Read more:

• Tweet: And also his forecast today….
• Tweet: forexlive.com publishes trading principles of our senior trader Martin Nikolov
• Tweet: Nice run. Inverted H&S. Great price action. STRYKER – again in position after correction with flag formation.
• Tweet: Once upon a time, my start a 100 years ago :)
• Tweet: Pompeo started pumping. No one can stop the algos in a thin market.