What happens if a price data glitch causes a false breach?

Quick answer

A bad price can breach accounts unfairly. A good firm detects the glitch, identifies accounts breached during the affected window, reviews them against reliable prices, and reinstates accounts that would not have breached. A written policy for erroneous prices avoids arguments later.

Detailed answer

A policy for price errors:

  • Definition: what counts as an erroneous price (far from other sources, reversed quickly).
  • Detection: monitoring of the feed and a spike in breaches.
  • Review: compare against a second source for the window.
  • Remedy: reinstate or replace affected accounts.
  • Communication: tell affected traders what happened.

Records make this possible. PropExecutor stores the time and reason of every breach, so you can list accounts breached within a specific minute, and the feed uses raw prices from cTrader's live feed. The firm decides on reinstatement; replacing an account is a new account on the same type.

Example

A single quote shows gold $15 away from every other source for one second. Five accounts breach. Comparing the quote with a second source shows the error, and the firm replaces the affected accounts with new ones at their previous balances and explains why.

Record the incident in a log.

PropExecutor team · Updated

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