At Templer FX we always endeavour to provide our clients with the best execution available via leading market liquidity providers but as is the case in all financial markets there are times in the FX market where extreme volatility or volume can occur - the condition known as a "fast market". Fast market conditions can occur at any time but are most common during economic data releases or news events especially where liquidity is at a premium (for example national holidays) ,order imbalances-significantly greater orders of one type (e.g., "buys") than another type (e.g., "sells") or after a week-end as the market reopens.
During the extreme price volatility in fast markets, currency pair prices will "gap" and spreads widen. A price gap occurs when the price of a currency pair either jumps or plummets from its last bid/offer quote to a new quote, without ever trading at prices in between those quotes. As an example, the Euro/US Dollar currency pair may move from a bid/offer of 1.1891-1.1894 and begin trading at 1.1941-1.1944, without ever trading at the prices between those quotes.
The standard industry practice for currency dealers ,banks and ECNs, including dealers on the interbank market, during fast market conditions and price gaps, is to set market levels and execute orders manually without the use of automated systems or services. The process during fast markets is typically:
Initially, major money center banks and other online price providers halt all direct dealing and their pricing engines are suspended, Currency dealers analyze event and determine the correct price, Prices enter market 20-30 pips wide or more, Spreads in market narrow as more currency dealers enter the market.
In such an event, there may be a delay in pending orders execution, which may be significant, while rates are cross-referenced to ensure valid execution. Further, stops placed close to a market that has traded through the stop price are re-priced on the next best tradable price. Thereby, a specified rate order does not provide a fixed-price guarantee to the counterparty.
Templer Holdings, like all currency dealers, is a "market execution" dealer, and follows industry standards for fast market conditions. However, Templer Holdings' clients that elect to trade during fast market conditions are responsible for losses incurred by their account because of such trading, as clients are responsible during normal trading conditions. These responsibilities are the same responsibilities that Templer Holdings has with its interbank counterparties during normal and fast market conditions. Templer Holdings will not be held liable for any losses due to fast or volatile markets, electronic disruption in service, service delays, incorrect information received from service vendors (i.e., quotations, news services) and/or customers (i.e., client profile data, updated data).
Placing Orders in "Fast Markets"
Templer Holdings recommends that you be aware of price actions during important data releases and determine your personal levels of comfort and risk. During volatile market periods that can be caused by important data releases, the following information serves as a guideline for placing orders.
- Sufficient cash or buying power is required before you place any trade. Check your account to be sure that you have adequate funds before you do any trading.
- Market order executions may differ significantly from the price you were quoted during fast markets. Limit orders may offer a level of protection from these market fluctuations.
- No pending orders( including SL and TP) are to be processed within "trading halt" time. All BUY pending (including SL and TP) orders activated within "trading halt" time are to be executed at the highest ASK registered during "trading halt time", all SELL pending orders(including SL and TP) are activated at the lowest BID registered during the "trading halt" time.
- TemplerFX uses an automated transaction monitoring and risk-management system to ensure that a client's balance will never fall below the level of their initial deposits,which basically means that we guarantee a zero account balance if you fall into negative equity—you cannot lose more than your initial deposit.
- If you have yet to receive confirmation on a trade placed earlier in the day, do not place the same order again. A delay in receiving word on a confirmation does not necessarily mean that the order has not been executed. This applies to all types of orders. You can call the trading desk or chat with online support and request a "status check" and Templer Holdings will look into the status (i.e., open, executed, cancelled, etc.) of your order.
- If you have a discrepancy about an order you placed or an execution you received, please have the all the necessary information ready before you call or chat with online support: Account Number, Ticket ID #, Buy/Sell, Currency Pair, Lot Size, Price, Time, Online or Telephone Order. The more information you give Templer Holdings, the better Templer Holdings can expedite your query during fast market conditions.
Templer Holdings will not be held liable for customer losses due to fast or volatile foreign exchange markets, electronic disruption in service, service delays, incorrect information received from service vendors (i.e. quotations, new services) and/or customers (i.e. client profile data, updated data).