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
Related questions
- The PropExecutor rule engineHow quickly does PropExecutor detect a breach?
- Technology and trading platformsWhat happens to traders if the platform goes down?
- What is toxic flow in prop trading?
- How should a prop firm handle a sudden price spike?
- Technology and trading platformsWhat is a risk engine in a prop firm?