Please give me a hint about the following problem which is mainly related to details of execution which are unknown to me. The account type is no dealing desk.

Two days ago there was a sudden drop in EUR/CHF to around 1.2004.

At fxcm this happened to go as deep as 1.1980 as you can see in the price history. So at fxcm the eur/chf was under the ceiling for a while. But yahoo says daily low was 1.2004

This caused that Z5 closed two positions with high loss at prices 1.1990 and 1.1981 These are soft stops which means that fxcm reported those price to Zorro and Zorro decided to stop the positions.

I have sent an inquiry to fxcm the same day. Next morning (yesterdy) the eur/chf went high. Today I have got the following answer from fxcm:

"The rate which was reached on the EUR/CHF at this time was caused by the widening of the spread during the release of the USD Consumer Price Index report. These rates were confirmed to be a cause of a valid rate provided by multiple liquidity providers.

As a measure of good faith, FXCM has credited your account XXX EUR, crediting these positions to the rate of 1.2007.

To learn more about FXCM's execution policies, visit http://www.fxcm.co.uk/trading-execution-risks.jsp "

So my questions are:

- Can the widened spread really cause this? If yes, it is possible to avoid this in the strategy or by Zorro in general?

- Why give they money to me if this is normal behaviour of the system? Do you think this is a correct solution?

Last edited by molloy; 12/19/14 20:09.