Bad Tick

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Dear Investors,

In cases where excessive risk pricing and volatility, referred to as “anomalies” in the markets, are above normal, some of our products experience a price provider-based quotation problem.

We have been encountering these problems lately, especially in specific products (market closed or closed exchange, cross, exotic product pairs). We would like to indicate some of the risks that occur in terms of investor and corporate security.

What is “BAD TICK”?

If the price deviates more than expected, apart from the normal deviation, it can be experienced especially in unorganized over-the-counter markets due to the differences in FX market spreads and the institutions where the price is provided. For example, the deviation of the EURUSD shear between 0.2 and 2.0 pips can be considered normal, while the deviation of 2.00-5.00 pips is outside the normal situation. In some cases, this deviation can be experienced even in the range 10.0-50.0. As an example, let’s assume that most brokerage houses have an average price between 1.0850 and 1.0860. Brokerage houses reflect the prices on their own platforms by obtaining them through the liquidity provider without being organized. Here, let’s assume that there is an average 70-100 quotations per second, a bridge link with depth and milliseconds competing. Average 1.0850-1. For the parity priced between 0860, if it is seen in a quite different region such as 1.0880-1.0910 in the institution you are trading, it is called “BAD TICK”. There are many reasons for this. If such sudden pricing occurs throughout the market, we cannot speak of a deviation anyway. However, while there is a price below in almost all of the institutions, this pricing, which creates a GAP, ie a price gap, can cause loss to investors and even make sudden profit take / stop orders work. Liquidity providers, on the other hand, detect these movements and apply corrections and the orders subject to this are corrected or canceled. If such sudden pricing occurs throughout the market, we cannot speak of a deviation anyway. However, while there is a price below in almost all of the institutions, this pricing, which creates a GAP, ie a price gap, can cause loss to investors and even make sudden profit take / stop orders work. Liquidity providers, on the other hand, detect these movements and apply corrections and the orders subject to this are corrected or canceled. If such sudden pricing occurs throughout the market, we cannot speak of a deviation anyway. However, while there is a price below in almost all of the institutions, this pricing, which creates a GAP, ie a price gap, can cause loss to investors and even make sudden profit take / stop orders work. Liquidity providers, on the other hand, detect these movements and apply corrections and the orders subject to this are corrected or canceled.

Although there are many factors that cause this situation, the biggest factor is the inability to obtain the desired price due to the spread and volume, or systemic, ie technological problems. Sometimes, this situation can take hours due to the spread difference that occurs by gaining continuity. Every price gap that occurs enables the systematic movements made by the systems that detect it, which we call “Guarantee Profit”, towards the manipulated version of the price. These movements are canceled or corrected by the institution that provides liquidity and is responsible for the price.

Especially after Corona virus, rapid liquid changes in global markets have created the basis for these errors.

We would like to inform our esteemed investors that we are taking all precautions against victimization or fraudulent transaction attempts in these and similar transactions, which we try to exemplify within the scope of our transparency principle, and that we will also publish this on our official site. We would like to thank our valuable investors for their understanding and wish you a successful day by explaining once again that such movements in non-organized markets should be met as usual and that we will make the necessary corrections in accordance with our agreements with the price provider and that this is essential.

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