For clients
- Non-market quotes (Spikes,Off-quotes)
A spike is a non-market quotation. It may be represented in one of the following ways:
A non-market quote is a quote that complies with each of the below criteria:
- Existence of a considerable gap;
- The price returns to it’s original values within a short period of time generating a gap;
- Absence of sustainable price dynamics before this quote appeared;
- Absence of macroeconomic events or corporate pieces of news influencing the instrument’s quotes considerably.
Non-market quotes usually are sent to a broker via informational systems. The major reasons for that are:
- Technical error.
- A singular deal, often a mistaken one, registered in the informational system.
- Considerable momentary spread widening or unilateral changes in the BID or ASK levels.
Example 1
One of the sellers placed a lot at a price way lower than the current one (e.g. by mistake). One of the buyers reacted to that immediately and bought the lot. Consequently nobody can place a deal at the same price, but the deal was registered and got to the informational system. The non-market quotes on do not get executed on live accounts and if they do, they are obligatorily annulled; the spike consequently gets deleted from the quotes archive. Such deals do not get annulled on the demo accounts.
Example 2
On a low liquidity market in the period between 23.00 EET and 04.00 EET, in the trading system of a large liquidity provider, there would be a high volume deal widening the spread 10 times for a short period. The positions closed due to that case are recovered if applicable, or a client gets a corresponding compensation.
A spike is a non-market quotation. It may be represented in one of the following ways:
A non-market quote is a quote that complies with each of the below criteria:
- Existence of a considerable gap;
- The price returns to it’s original values within a short period of time generating a gap;
- Absence of sustainable price dynamics before this quote appeared;
- Absence of macroeconomic events or corporate pieces of news influencing the instrument’s quotes considerably.
Non-market quotes usually are sent to a broker via informational systems. The major reasons for that are:
- Technical error.
- A singular deal, often a mistaken one, registered in the informational system.
- Considerable momentary spread widening or unilateral changes in the BID or ASK levels.
Example 1
One of the sellers placed a lot at a price way lower than the current one (e.g. by mistake). One of the buyers reacted to that immediately and bought the lot. Consequently nobody can place a deal at the same price, but the deal was registered and got to the informational system. The non-market quotes on do not get executed on live accounts and if they do, they are obligatorily annulled; the spike consequently gets deleted from the quotes archive. Such deals do not get annulled on the demo accounts.
Example 2
On a low liquidity market in the period between 23.00 EET and 04.00 EET, in the trading system of a large liquidity provider, there would be a high volume deal widening the spread 10 times for a short period. The positions closed due to that case are recovered if applicable, or a client gets a corresponding compensation.